CEO of blockchain trust company Paxos says precious metals-backed digital token will “definitely” be launched this year, during interview with Fortune.
CEO of Paxos, the blockchain trust company, has said that its precious metals-backed digital token will “definitely” be launched this year. Chad Cascarilla made the statement in an 11th March interview with Fortune’s Balancing the Ledger.
For some time it has been known that Paxos has been working on a precious metals-backed cryptocurrency, with gold being the expected launch metal.
During the interview, Cascarilla explained that the company was working on ensuring it would have enough physical gold in its vaults to back the tokens issues on the blockchain, saying:
“In order to put something in a blockchain, you have to make sure you have the right amount of inventory in the real world versus what is in the blockchain.”
Paxos, which was originally founded as Bitcoin (BTC) exchange itBit back in 2012, holds a trust company charter in New York state, enabling it to be custodian of mainstream financial assets. The company apparently raised an impressive $65 million in a recent funding round, enabling it to expand its business.
In September 2018, Paxos launched an Ethereum (ETH)-based stablecoin, pegged 1:1 to the US dollar, named Paxos Standard (PAX). Unlike other stablecoins, PAX is fully audited, high regulated and has received official approval from the New York State Department of Financial Services (NYDFS), and benefits from relative liquidity.
AYO.NEWS says:
A gold-backed token is certainly interesting, and is sure to get a lot of kudos from more traditional financial types, though there’s no denying that such a highly regulated stablecoin will inherently be too straight-laced for may in the cryptosphere.
