Friday, June 2, 2023
HomeCoinsPaxos Expands Ecosystem of its Gold-Backed Crypto Token

Paxos Expands Ecosystem of its Gold-Backed Crypto Token

Paxos, a New York-based exchange that issues stablecoins, has today announced some updates on its bullion-backed crypto asset (PaxGold), which includes a new partnership that allows holders of Paxos to redeem physical gold using their digital token.

Paxos backs every PAXG token with real bars of gold, so anyone who owns the token legally also owns the physical gold. The company has also engaged Alpha Bullion to allow PAX Gold holders the ability to redeem in smaller sizes, ranging from 1 gram up to 1 kilogram. This gives them more flexibility than other options.

The company explained that customers with 430 PAXG can redeem gold bars directly from Paxos, but Alpha Bullion allows customers to get physical gold with smaller amounts.

Withum, a top-25 auditing firm in the US, periodically verifies that Paxos Trust Company holds gold reserves that cover the number of issued and outstanding PAX Gold tokens in circulation.

As crypto-related lending business remains on a growth tear, Paxos also assured investors in its Ethereum-based token that they can easily earn interest on their holdings through Genesis Lending, Celsius, and Nexo. SALT, a crypto loan startup, now offers PAXG-backed loans in fiat and stablecoins like TrueUSD, USDC, and PAX.

The crypto lending has become increasingly popular, and the momentum continues into the bull market. Holders who want to double their crypto wagers can use Paxos integration in these lending platforms.

Crypto enthusiasts will be attracted to tokenized gold

The stablecoin issuer also expanded the PAX Gold ecosystem by making the token available for trading on HitBTC, Bithumb Global and other exchanges. More exchanges will follow soon.

PAX Gold (Ethereum ticker PAXG), digitizes bullion in a controlled manner. Every PAXG is backed by one troy ounce gold in a London vault.

Paxos may have some advantages as a regulated trust organization, but similar projects have not been able to provide a long-lasting solution in tokenized gold. The latest in a string of companies pulling the plug on their bullion-backed coins has come from Goldmoney Inc. (TSX:XAU), one of the biggest precious metals storage firms. The company pulled out of the vaulted crypto service earlier this year without disclosing the reason behind it.

Paxos is a US licensed financial services company, which allows it to offer tokenized securities as well as access to the traditional banking system. The unique position has enabled the firm to join forces with the world’s most influential crypto exchange, Binance, to secure the NY regulator’s approval to launch a new USD-backed stablecoin.


Most Popular