Paxos rolls out new crypto-asset that is redeemable for physical gold
Category: #business  By Mateen Dalal  Date: 2019-09-07
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Paxos rolls out new crypto-asset that is redeemable for physical gold
  • Every PAX Gold token would be backed by one London Good Delivery gold’s fine troy ounce which will be stored in official vault facilities across London.
     
  • Consumers can convert the PAXG tokens to and from unallocated gold or flat currency, or exchange tokens for actual gold bars.

Paxos Trust Company, a financial organization that mobilizes and digitizes assets, has reportedly unveiled PAX Gold (PAXG), an Ethereum (ETH) token which is gold-backed.

Paxos claims PAXG to be the first crypto digital asset that is redeemable for gold. The New York State Department of Financial Services (NYDFS) has authorized Paxos to issue PAXG, subsequently making PAXG the first digital asset gold product.

Reports cite, every PAX Gold token would be backed by one London Good Delivery gold’s fine troy ounce, which will be stored in official vault facilities across London. Users purchasing tokens in question supposedly own the gold it represents. However, these tokens can be easily moved just like any ERC-20 tokens which is quite easier than shipping the actual gold.

Paxos would charge certain fees on the on-chain transactions that involve the token, and on PAXG creation as well as destruction. Paxos co-founder and CEO Charles Cascarilla stated that in a global and digital financial system, owning actual gold is cumbersome as well as an outdated investment. Charles added that it is not easy to move, divide, leverage or trade against other investments. Gold bought from any unaccredited retail outlet is risky as well as expensive as the provenance and quality of the gold is not verified.

Paxos claims that customers can convert the PAXG tokens to and from unallocated gold or flat currency, or exchange tokens for actual gold bars. Additionally, owners of token can allegedly find the brand code, serial number, fine weight, fineness, and gross weight of their respective gold bars.

 

Source credit: https://cointelegraph.com/news/paxos-launches-pax-gold-regulated-and-redeemable-for-physical-gold

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Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

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