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Blockchain Industry News

Paxos CEO Announces Cryptocurrency Backed by Precious Metal

The CEO of Paxos Chad Cascarilla announced the launch this year of a precious metal-backed cryptocurrency during Fortune’s Balancing the Ledger. Cascarilla admitted during the interview that this cryptocurrency would most likely be backed by gold.

Gold Token Standard

Paxos believes that the implementation of the concept is essential in ensuring that the amount of the coin in real-time inventory would be equivalent to its numbers on the blockchain. Cascarilla explained that what the company does with a gold token should equal its amount of goal in a vault as well as the number of outstanding gold tokens.

Ethereum Based

Paxos’ status as a financial institution is necessary in ensuring that the company will use the banking system in holding backing assets for their gold token in the real world. Paxos’ PAX, or Paxos Standard, is currently the stablecoin of the firm. It is Ethereum (ETH)-based and is completely backed by the US dollar. Launched in September 2018, PAX was subjected to the regulation by the Department of Financial Services or NYDFS. This makes it more stable than any stablecoin.

In May 2018, Paxos took steps to raise a total of $65 million from numerous investors in order to boost its operations. In fact, as reported by Cointelegraph, PAX has exceeded an estimated $5 billion when it comes to overall transactions. The market cap was greater than $174 million, and from which, $136 million went to the trust company.

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