Paxos Standard is an ERC20 token. This means its transactions occur on the Ethereum blockchain, which require that the sender pay a fee in ETH to ensure their transaction confirms. Learn more about ETH fees here.
You will need a small amount of ETH in order to Swap your Paxos Standard for any other cryptocurrency within the Blockchain.com Wallet, or to send it externally to a third-party exchange or platform. However, you do not need to keep an ETH balance in order to receive or to store Paxos Standard in your Wallet. If you don’t have enough ETH to use your Paxos Standard, you can Swap for it from another cryptocurrency or receive it from another exchange or platform.