Paxos launches a gold-backed coin to the cryptocurrency community

Paxos, a New York-based crypto company, is moving into a new type of cryptocurrency. The company is now launching a new digital asset called PAX Gold, which will be a crypto token backed by gold.
Bringing gold to the blockchain
Although Paxos is not the first company to combine precious metals with blockchain, it is undoubtedly one of the most well-known. Previously, Paxos launched a stablecoin, Paxos Standard Token (PAX), which is pegged 1:1 to the US dollar. The company announced on Wednesday that it will launch a new coin called PAX Gold, which will be backed by actual gold. Each PAX Gold will be worth the same as one ounce of gold. The assets will be securely stored in a vault in London.

According to the company, the digital currency will allow users to actually own gold. Unlike Bitcoin, they are not just betting on a fantasy technology concept, but on a real, physical commodity that is almost universally accepted. Paxos said it will provide users with serial numbers of gold bars corresponding to the currency they hold. This will increase trust in the digital currency and ensure that no accidents will happen.

Paxos is an exception in the cryptocurrency world
While most companies involved in digital currencies in the U.S. face uncertainty over their legal status, Paxos is a notable exception. The company is headquartered and regulated in New York State. Paxos points out that its good regulatory standing ensures that customers’ assets will be protected, even in the event of bankruptcy.

Now the question is why would an investor want to hold gold in the form of digital currency? In addition to buying physical gold, people can also invest in gold ETFs, which can help them get all the benefits of gold investment without having to touch any gold.

Paxos CEO Chad Cascarella said blockchain-based gold ownership will make holding gold simpler and cheaper. He said the company will not charge customers any annual custody fees, which makes holding gold through blockchain more profitable than other methods. He also pointed out that holding gold in the form of digital currency will also be easier to cash out.

“There’s a lot of overlap in mentality between the crypto world and people who hold gold. Now you have the liquidity, divisibility and transferability of crypto, but also gold.”

Join our Telegram channel to get instant news coverage.