Paxos, a New York-based startup, has rolled out a gold-backed cryptocurrency after getting regulatory approvals from the Department of Financial Services (NYC), Reuters reported on Thursday. It will also introduce a stablecoin pegged to the USD later this month.
It’s called PaxGold, the ethereum-based digital token is likely to attract more traders because each of them encapsulates the authorized title to a physical bar of gold stored in professionalvault facilities in the capital city of England.
“It’s not a representation of the commodity, its actual legal title to it,” Chad Cascarilla, CEO of Paxos was quoted as saying by CoinDesk.
Since Pax Gold is an ethereum-based token, it can be easily integrated with lending platforms, wallets, exchanges, and other crypto-based products.
On the other hand, the stable coin which is slated for a launch later this month is called BUSD. It is co-developed by Paxos and Binance, a global cryptocurrency exchange.
Last year, regulators from NYC gave the green signal to Paxos to unveil Paxos standard, its first stablecoin pegged to USD. There is all total of three asset-backed tokens which are approved by DFS: BUSD, PAX Gold, and Paxos Standard.
Mr. Cascarilla said that the company will join with more partners across the globe from the traditional commodity industry so that users have the option to claim real gold even if they’re not physically present in NYC and London.