Gold-Backed Crypto Currency Set To Launch This Year

Paxos, a New York Based Block Chain Trust company is planning on launching another digital token, this time backed by precious metals, plausibly gold and publicly traded stocks.

Investors will soon be able to buy gold and stocks in the form of crypto currency with the digital token set to be launched “definitely this year” as stated by Paxos CEO, Chad Cascarilla in an interview with Fortune’s Balancing The Ledger on March 11, 2019.

The US crypto company, the first virtual currency company to be licensed in New York currently offers an Ethereum (ETH) based Stablecoin backed 1:1 by the U.S. Dollar, known as Paxos Standard (PAX). Cointelegraph reported that last December (2018) PAX exceeded $5 billion worth of transaction volumes, with a market cap of $174 million.

It also offers Bitcoin (BTC) trading services and is currently working hard to obtain enough physical stores of precious metals “in the real world” that correspond to the number of assets in a Blockchain in order to make it work. This is made easier due to the firm’s status as a financial institution.

Cascarilla explains,

“In order to put something in a Blockchain, you have to make sure you have the right amount on 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”.

The goal for Paxos is to put commodities onto the block chain and “gold is probably the most obvious” Cascarilla explains.

By tokenising precious metals this opens up new possibilities that are currently physically difficult, such as dividing up a gold bar into smaller quantities, transportation or lending. Cascarilla further explains that

“having it sit in a vault but also having it be on a Blockchain bridges those two worlds”.

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