• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Upcoming Events
    • TMRW, Dubai (February 8-10, 2023)
    • European Blockchain Convention, Barcelona (February 15-17, 2023)
    • Blockchain Fest, Singapore (February 16-17, 2023)
    • Blockchain Economy Summit, London (February 27-28, 2023)
    • Paris Blockchain Week (March 20-24, 2023)
    • GAIN Expo, Amsterdam (May 4-5, 2023)
    • Blockchain Expo North America, Santa Clara (May 17-18, 2023)
    • COMEX, Oman (May 22-25, 2023)
    • BLOCK3000: Blockchain Battle, Lisbon (July 6-7, 2023)
    • NFT Show Europe, Valencia (July 14-15, 2023)
    • TOKEN2049, Singapore (September 13-14, 2023)
    • Blockchain Expo Europe, Amsterdam (September 26-27, 2023)
    • Future Tech Event, Oman (November, 2023)
  • Past Events
    • Event Horizon
    • Blockchain Life
    • BlockShow Europe

Crypto Reporter

Online magazine about cryptocurrencies, NFTs, DeFi, GameFi and other blockchain technologies


Join us on Telegram: https://t.me/crypto_reporter
Visit Paris Blockchain Week on March 20-24, 2023
  • News
    • News Feed
    • Cryptocurrencies
      • Bitcoin
      • Altcoins
    • Payment solutions
    • Exchanges
      • Binance
      • bitFlyer
      • Bitfinex
      • CBOE
      • CME
      • Coinbase
      • Coincheck
      • Coinfloor
      • Nasdaq
      • Poloniex
    • Regulations
      • Australia
      • Belarus
      • China
      • Europe
      • India
      • Iran
      • Israel
      • Japan
      • North Korea
      • Philippines
      • Portugal
      • Russia
      • South Korea
      • Thailand
      • Turkey
      • Venezuela
      • Vietnam
      • United States
    • Blockchain platforms
    • Crypto news in brief
    • Stats & trends
    • Reviews
      • Ambrosus
      • ATN
      • Dash
      • Green Power Exchange
      • Power Ledger
      • ShapeShift
      • Waltonchain
      • Cryptocurrency market capitalization can top 4 trillion USD, under conservative estimates
    • Opinion
    • Sponsored
  • Press Releases

Paxos to launch gold-based cryptocurrency

May 2, 2019 By Crypto Reporter

New York-based firm Paxos is making waves in the world of cryptocurrency, as it plans to introduce digital tokens backed by precious metals this year. Just six months ago, a stable coin, Paxos Standard, was launched, linking cash reserves to blockchain. Fortune reports that before the year ends the company expects “any type of asset to be put onto blockchain.” Paxos CEO Chad Cascarilla believes “gold is probably the most obvious.”

In that same report, Cascarilla said, “The goal is to move assets and settle transactions more quickly and securely and with lower fees.” He explained that the key is to ensure that the amount indicated on the inventory is the same amount available in real life. “How you do it with a gold token is how much gold you have in a vault equals how many gold tokens outstanding.”

Cascarilla believes Paxos is the only cryptocurrency company with an account at the Depository Trust Company, which holds the majority of the U.S. stocks and bonds. This could potentially make Paxos the first virtual currency company to bring stock trading to blockchain. However, the firm still needs approval from the U.S. Securities and Exchange Commission before it can proceed with its plans. This is important, especially since tokenizing precious metals like gold will open up new possibilities that are currently physically challenging, like dividing gold bars into smaller denominations, transporting heavy quantities, and lending assets more efficiently.

A brief background on Paxos shows that the company is more than capable of handling these challenges. Paxos reportedly has already raised $65 million from investors to bolster its operations. Apart from its financial capabilities, Paxos also holds a trust company charter in New York, which gives it the same privileges as a bank. A post by Yahoo Finance notes that late last year, Paxos exceeded $5 billion worth of transaction volumes, which shows how the adoption of stablecoins is growing.

While Paxos is trying to combine gold and cryptocurrency, many experts are asking whether digital currencies could in the end replace the precious metal. Over the years, gold has proven to be a great alternative to both fiat currency and cryptocurrency. However, as the use of digital currencies becomes more widespread, cryptographer Nick Szabo believes there is a big possibility that banks will end up using bitcoin as a reserve currency. “I think it will be one of the many reserve currencies that can be used to underpin value on other things. There doesn’t have to be only one anymore,” he said.

But to others, this may still not happen. Gold is still seen as the dependable safe-haven asset, as demonstrated by the price increase this year due to global economic turmoil. The gold price chart featured on FXCM shows how 2019 has been a good year for the precious metal after hitting a low last August. Despite ups and downs gold has stayed steady and hasn’t deviated widely from the $1,300 mark. Bitcoin’s value on the other hand has reach as high as $20,000 before dropping very quickly to below $4000. It is for this reason that gold remains popular with investors, and why companies like Paxos are keen to base a cryptocurrency on it.

The regulatory landscape for stablecoins still remains unclear, too, which could be another setback for firms with the same plans as Paxos. However, despite these challenges, firms with gold-backed digital assets like Digix and BitGo continue to create digital gold tokens that are redeemable for gold. Cryptocurrency pegged to the value of gold looks like it’s here to stay.

More news:

  • PayPal to launch its own crypto wallet 
    PayPal to launch its own crypto wallet 
    August 4, 2021
  • Associated Press to launch NFT photography marketplace
    Associated Press to launch NFT photography marketplace
    January 13, 2022
  • CME Group to launch three metaverse indices 
    CME Group to launch three metaverse indices 
    January 20, 2023
  • Indonesia to launch a national crypto exchange
    Indonesia to launch a national crypto exchange
    January 6, 2023
  • JPMorgan to launch an actively managed bitcoin fund
    JPMorgan to launch an actively managed bitcoin fund
    April 29, 2021
  • Nasdaq to launch crypto custody service for institutional investors
    Nasdaq to launch crypto custody service for institutional investors
    October 1, 2022

Filed Under: General News, News Tagged With: cryptocurrency, gold, news, Paxos

Primary Sidebar

Follow Us

Press Releases

Banxa and MetaMask Partner to Make it Easier to Access Web3

February 7, 2023

Orbeon Protocol (ORBN) vs Fantom (FTM): Which Will Offer Better Returns?

February 7, 2023

Orbeon Protocol (ORBN) Continues Upward Trend, While Filecoin (FIL) and Zcash (ZEC) Struggle

February 7, 2023

CoinDCX appoints former Flipkart exec Sridhar Govardhan as CISO

February 7, 2023

Public proof-of-concept testnet for new interoperable sidechain toolkit on Cardano now live

February 7, 2023

TMRW

EBC 2023

Blockchain Fest Singapore 2023

Blockchain Economy London 2023

PBW 2023

GAIN Expo 2023

Blockchain Expo North America 2023

COMEX 2023

Blockchain Expo Europe 2023

Blockchain Expo Global 2023

Footer

Crypto Reporter is an online magazine about cryptocurrencies, NFTs, DeFi, GameFi and other blockchain technologies
About us
Contact us
Submit press-release

Search

2017-2023 Crypto Reporter