Paxos, the popular blockchain trust company, will issue a digital token backed by precious metals ‘’definitely this year’’ according to Paxos CEO Chad Cascarilla in an interview which we are reading today in our crypto news today.
During the interview, Cascarilla explained how Paxos is working on a gold-backed coin and he continued to explained that ‘’it is something we will see definitely this year.’’ He added:
‘’ We are excited about the concept of being able to take a commodity and I think precious metal are really obvious ones, and gold is probably the most obvious and being able to tokenize it.’’
In order to be able to implement the new concept, Paxos has to make sure that it has in his hands the right amount of inventory in the real world which is equal to one registered on blockchain. Cascarilla explained:
“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. How you do with a gold token is how much gold do you have in a vault equals how many gold tokens outstanding.”
He also continued to explain about the company’s status as a financial institution which allows the company to utilize the banking system in order to make possible that they are holding backing assets in the real world that are equal to the number of assets on a blockchain. While Paxos is planning to launch its metal-backed digital token this year, Cascarilla made clear that the company has not set the exact date yet.
While talking about the Paxos Standard (PAX) which is the company’s ETH-based stablecoin backed 1:1 by the United States Dollar, Cascarilla stated that it is different from other stablecoins because it is fully audited and regulated after it got approved by the New York State Department of Financial Services (NYDFS) and it is also liquid.
Paxos was initially founded in 2012 as a bitcoin exchange named itBit but it later changed to a blockchain-focused firm. Now, Paxos holds a trust company charter in New York which means it has the same privileges as a bank.
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