Paxos Launches a Gold-Pegged Cryptocurrency
Paxos CEO Chad Cascarilla told CoinDesk:
It’s not a representation of the commodity, it’s actual legal title to it, This is the exact point of the blockchain, the exact premise, that you can now make assets easily moveable and divisible and not be tied to a manual, physical process.
According to the company's press release, each token costs as much as an ounce of gold. It can be exchanged for a physical bullion at partner institutions such as the Bullion Exchange, New York. Cascarilla said Paxos will expand its list of global partners in the traditional goods industry so that users can exchange cryptocurrencies for real gold, even if they are not in London or New York.
In addition, SALT, a specialist in cryptocurrency, now offers PAXG secured loans, available as fiat or stablecoins such as PAX, TrueUSD or USDC.
Chad Cascarilla also said that the company intends to tokenize other property. He is sure that this is a big and serious step towards the adoption of cryptocurrencies by investors.
However, it is not yet known whether the cryptocurrency community will accept an asset pegged to gold.
Messari co-founder Dan Macardle told CoinDesk that assets issued and held by centralized companies would not be able to compete with bitcoin as “digital gold”:
Bitcoin achieves all of gold’s relevant properties, plus a lot more, and is just better gold for the modern era, Bitcoin achieves its properties precisely because it has no centralized or federated anchors to the physical world. You simply can’t get the trustless/uncensorable properties of bitcoin if some relatively small set of people/entities has to manage physical objects represented on a blockchain.
It also became known that the Binance cryptocurrency exchange has released a new stablecoin Binance USD (BUSD), pegged to the US dollar.
To purchase BUSD, the Paxos platform will be used. BUSD trading on Binance itself in pairs with BTC, BNB and XRP will start later in September.
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