Blockchain Adds PAX Stablecoin to Mobile Wallet

One of the cryptocurrency industry's most popular wallet providers, Blockchain, is adding support for the dollar-pegged stablecoin PAX to its mobile wallets this week as part of a broader strategy to grow usage.

The head of Blockchain's wallet department and strategy, Xen Baynham-Herd, told CoinDesk the company eventually plans to enable fiat redemptions as well, through upcoming partnerships.

By Monday, users will already be able to swap assets like bitcoin, ether or stellar for PAX within the wallet itself.

PAX issuer Paxos, a New York-based startup, also has a commodities-focused operation near Blockchain's London headquarters.

Baynham-Herd said Blockchain is open to exploring options like Pax Gold, in addition to other stablecoins beyond PAX, because it will allow traditional assets to transcend national borders the way bitcoin already does.

Stepping back, Blockchain's wallets account for 22 percent of all on-chain bitcoin transactions, according to a tweet by Blockchain CEO Peter Smith.

Baynham-Herd said there are roughly 38 million wallet signups and millions of active monthly users, more than half of whom are located outside the United States.

Like many wallet providers, Blockchain wallets aggregate IP information based on the users' internet connection.

The wallet provider also provides optional KYC verification for users who want in-wallet trading capabilities or access to perks like the stellar airdrop last November.

Bitcoin advocate Udi Wertheimer told CoinDesk he would prefer Blockchain to prioritize Tor integrations and encourage users to do KYC with new accounts instead. "Potentially linking years of bitcoin activity to real-world identity just to get $5-worth of stellar doesn't bode well for the privacy of end-users," Wertheimer said.