The Paxos Trust Company, issuer of the PAX stablecoin, has just launched a new asset called PAX Gold (PAXG), which is an Ethereum token backed by gold. According to a press release by the company, Paxos has already received approval from the New York State Department of Financial Services (NYDFS), to launch the PAX Gold. This makes the asset the first cryptocurrency redeemable for physical gold.
According to the release, each digital token represents “one fine troy ounce of London Good Delivery gold stored in professional vault facilities in London.” This means that every PAXG holder, also owns the physical gold it represents, but can trade it like a digital asset on the blockchain, without worrying about the actual gold. The release also clarifies that the value is tied to the real-time market value of gold.
According to Paxos CEO and Co-Founder, Charles Cascarilla, trading physical gold is very difficult and while there are other derivatives such as ETF, futures and unallocated gold, they simply aren’t the same thing. Cascarilla iterates that:
“PAX Gold solves these fundamental challenges. It’s as easy to trade as ETFs or Bitcoin, is extremely mobile and divisible, and it also gives holders ownership to the highest quality gold in the world…By putting gold on a blockchain, we’re democratizing access to gold.”
Paxos will allow its users to exchange the PAXG to and from any supported fiat currencies or unallocated gold. The company will also allow users to receive tokens in exchange for actual gold bars.
Binance has also announced its decision to float a new stablecoin.
Image Credits: Pixabay
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