Paxos Trust Company, a regulated financial institution that digitizes and mobilizes assets, launched PAX Gold, the first gold redeemable crypto-asset. This development was reported on 05 September.
Paxos commenced by informing that the New York State Department of Financial Services (NYDFS) had approved Paxos to issue PAX Gold. The fintech firm further added that the development makes PAX Gold the first regulated digital gold product. Paxos emphasized that PAX Gold is an asset-backed digital token, each representing a unit weight of London Good Delivery gold. These are stored in professional vault facilities in London.
Charles Cascarilla, CEO and Co-Founder of Paxos cited –
“In a digital and global financial system, owning physical gold is a cumbersome, outdated investment; it’s not easy to trade, divide, move or leverage against other investments. While it’s easy to trade gold derivatives – ETFs, futures and unallocated gold – these are synthetic representations, not legal ownership of physical gold, and have limited accessibility. Gold purchased through unaccredited retail outlets is not only expensive, but also risky as the quality and provenance of the gold are unverified.”
Paxos maintained that PAX Gold customers could own the physical gold, while also benefiting from the mobility of a digital asset. The fintech firm further noted that since PAX Gold represents physical gold, its value is tied directly to the market value. Paxos provided insight that PAX Gold was built as an Ethereum token. Paxos summarized that this feature makes it easy to integrate with exchanges, wallets, lending platforms, and other crypto products.
Paxos, in a nutshell, added that PAX Gold aligns with the Paxos mission to enable the movement of any asset in a trustworthy way. Paxos finally added that with PAX Gold, investors and traders around the world could own or trade real gold like Bitcoin.
Cryptocurrency exchange Huobi in collaboration with U.S-based cryptocurrency startup Stable Universal and stablecoin issuer and custodian Paxos will be launching its own dollar-pegged stablecoin. Stable Universal will be developing a dollar-pegged ERC-20 HUSD token and will be held in reserve by Paxos, a custodian regulated by the NYDFS. Reports added that the stablecoin will be initially listed on digital asset trading platform, Huobi Capital.