Paxos launches gold-tied cryptocurrency and stablecoin for Binance
Paxos launched the gold-linked cryptocurrency asset based on the Ethereum Pax Gold blockchain (PAXG) and received the appropriate permission from the New York Financial Services Authority (NYDFS). The company also entered into a partnership agreement with the Binance exchange for the release of Binance USD (BUSD) – stablecoin pegged to the US dollar. In CoinDesk's comment regarding Pax Gold (PAXG) Paxos CEO Chad Cascarilla […]
Paxos launched the gold-linked cryptocurrency asset based on the Ethereum Pax Gold blockchain (PAXG) and received the appropriate permission from the New York Financial Services Authority (NYDFS). The company also entered into a partnership agreement with the Binance exchange for the release of Binance USD (BUSD) – stablecoin pegged to the US dollar.
In CoinDesk's comment on Pax Gold (PAXG) Paxos CEO Chad Cascarilla said:
“This is not an expression of the goods, this is the actual ownership of it. This is the essence of the blockchain – assets can be easily moved and shared without being connected by a physical process. ”
According to him, each PAXG token costs as much as one ounce of gold and can be redeemed in exchange for a physical gold bar at partner organizations, for example, in New York Bullion Exchanges or London Brink's. The list of these organizations will be expanded.
In addition to offering cryptocurrency lending services, SALT startup now offers PAXG loans in fiat, as well as in PAX, TrueUSD and USDC stablecoins.
Chad Cascarilla is also sure that this is a big step towards the adoption of cryptocurrencies by investors in real assets. In the future, the company intends to tokenize other property.
However, whether the asset tied to gold will be able to find a response among crypto enthusiasts remains an open question. Thus, Dan Macardle, co-founder of Messari research company, says that assets issued by centralized organizations will not be able to compete with bitcoin as “digital gold”.
“Bitcoin not only has all the characteristics of gold, but also much more. Nowadays, this is simply better gold. He achieved these characteristics, as he does not have a centralized link to the physical world, ”he said.
Meanwhile, the Binance exchange announced the launch of a new stablecoin pegged to the US dollar. The Ethereum-based asset was named Binance USD (BUSD), and Paxos will also issue and store fiat reserves.
#Binance Partners with @PaxosGlobal to Launch USD-Backed Stablecoin ' $ BUSD '
BUSD will be available on Paxos for direct purchase and redemption 1: 1 for $ USD and available on https://t.co/QILSkzOI1K for trading initially against BTC, BNB and XRP.
– Binance (@binance) September 5, 2019
For the purchase and redemption of BUSD, the Paxos platform will be used. BUSD trading on Binance itself in pairs with BTC, BNB and XRP will start later this month.
Binance and Paxos also claim that they have already obtained NYDFS permission to service BUSD., Which will provide access to the new asset and New Yorkers.
Recall that earlier Binance released the stablecoin BGBP , the rate of which is tied to the British pound. The exchange also intends to launch the Venus stablecoin, which aims to become a “regional alternative” to the digital currency Libra being developed by Facebook.
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