Paxos’ Precious Metal-Backed Cryptocurrency to Launch This Year, CEO Says
CChad Cascarilla, CEO of blockchain trust company Paxos, has revealed that the business's gold-backed cryptocurrency will be released in 2019.
Blockchain trust business Paxos' digital token backed by rare-earth elements will be introduced “certainly this year,” stated Paxos CEO, Chad Cascarilla in an interview with Fortune's Balancing the Ledger on March 11.
Throughout the interview, Cascarilla was asked whether Paxos is working on a gold-backed coin, wherein he responded that “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,” Cascarilla added.
In order to implement the concept, Paxos has to ensure it holds the amount of inventory “in the real world” equal to the one registered on blockchain. Cascarilla explained:
“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 a vault equals how many gold tokens outstanding.”
Cascarilla stated that the firm's status as a financial institution permits the firm to use the banking system to guarantee that they hold backing assets “in the real world” that correspond to the variety of assets on a blockchain. While the company is preparing to introduce its valuable metal-backed coin this year, Cascarilla stated that Paxos has not set the precise date yet.
Speaking about Paxos Standard (PAX)– the company's Ethereum (ETH)-based stablecoin backed 1:1 by the U.S. dollar and released last September– Cascarilla specified that it varies from other stablecoins because it is totally audited, extremely regulated and approved by the New York State Department of Financial Services (NYDFS), and relatively liquid.
Initially established in 2012 as Bitcoin (BTC) exchange itBit, the startup later on rebranded as blockchain-focused company Paxos. Paxos holds a trust business charter in the state of New York, which gives it a few of the exact same advantages as a bank, consisting of the capability to take custody of mainstream financial assets. Last May, Paxos apparently raised $65 million from investors to bolster its operations.
Last December, Cointelegraph reported that PAX exceeded $5 billion worth of transaction volumes. At the time, the coin had been used in $5,245,958,124.65 worth of transactions, with a market cap of over $174 million (since press time, down to $113), of which the trust business had actually redeemed “over $136 million.”