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Gold-Backed Cryptocurrency in Market

The New York-based firm Paxos a blockchain trusted company, its digital token which is backed by precious metals is going to launch this year, stated the CEO of Paxos Chad Cascarillla in an interview on March 11. He was asked about Paxos working on a gold-backed cryptocurrency, to which he replied, “It is something we will see definitely this year.”

“We are excited about the concept of being able to take a commodity, and I think precious metals are really obvious ones, and gold is probably the most obvious and being able to tokenize it,” he added further. Paxos has to sure about its grip on the amount of record “in the real world” same as the one to register on the blockchain, to imply the gold-backed Cryptocurrency. In this account, Cascarilla said, “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 vault equals how many gold tokens outstanding.”

The firm’s stable coin of the Ethereum (ETH) backed up by 1:1 with the US dollar and it was introduced in last September. Cascarilla explained that Paxos gold-backed cryptocurrency is different from other stablecoins and it can be fully audited, highly controlled and validated by the New York State Department of Financial Services (NYDFS). Paxos was first founded in 2012 as itBit as a Bitcoin (BTC) exchange.

Paxos is the only cryptocurrency firm that has an account at the Depository Trust Company, which keeps the enormous majority of U.S. stocks and bonds, positioning the company to become first to lead stock trading to the blockchain. Paxos has the same advantages as a bank because it holds as a trust company charter in the New York state, which enables it to take authority of mainstream financial currency.  In May last year, it gained $65 million from investors to support its operations.

About Arushi Dubey

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