Paxos launches a unique asset – the PAX Gold token under the PAXG ticker is based on the Ethereum blockchain, it will be tied to gold.
Paxos introduced its new product in a September 5th press release. It is known that Paxos has already received permission to work with PAX Gold from NYDFS, where it was announced that this product will be the first virtual currency tied to gold in the state of New York. One PAXG token is backed by one ounce of gold from London's Good Quality Delivery Standard. Owning tokens, the token holder owns gold, however, the token can be moved without any problems like any other ERC-20 standard token, which can not be said about gold.
Chad Cascarilla, co-founder and CEO of Paxos, drew attention to the benefits of tokenization. He noted that in a digital global financial system, owning physical gold is a burdensome and outdated way of investing, which also limits investors in terms of trade and exchange. Token holders can exchange the asset for gold by contacting organizations that are partners of Paxos – for example, Bullion Exchanges (USA), Brink's (UK), in the future the list of available organizations will expand.
On the eve, it also became known that Paxos was collaborating with Binance, supporting her as a custodian in a project to develop the stablecoin BUSD, tied to the national currency of America.
