Paxos launches new gold-tied stablecoin Pax Gold

New York-based Paxos Launches Gold-Linked Stablecoin Pax Gold (PAXG). The company believes that such an instrument can attract new investors to the industry.

It is reported that the stablecoin will be launched on the Ethereum blockchain. The company emphasized that each token will be provided with gold at the Brink vault in London. The cost of Pax Gold is equal to an ounce of gold and each stablecoin holder can exchange it for a physical bullion of precious metal.

“This is not a presentation of the goods. In fact, this is a legal title to it. This is the very advantage of the blockchain when assets can be made easily moveable and divisible, as well as not tied to physical labor, ”said Charles Cascarilla, CEO of Paxos.

He also stressed that the company will expand the list of partners around the world so that residents of other countries and cities can also quickly and easily exchange their token for a gold bar.

“We are going to make more of these products when we take a real asset and transfer it to the blockchain,” Cascarilla said.

Interestingly, according to Dan McArdle, the co-founder of Messari, such an asset, issued by a centralized organization, will not be able to compete with real “digital gold” – bitcoin.

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Note that Paxos plans to launch a stablecoin tied to precious metals became known back in March this year.