Paxos CEO Confirms Launch of PAX Digital Token, Backed by Precious Metals, Will Launch This Year
Bitcoin has long been nicknamed “digital gold,” referencing its value as an asset. However, the use of precious metals is something that Paxos has taken to heart as something it can offer. Having already launched a stablecoin several months ago, which is tied to cash reserves, CEO Chad Cascarilla confirmed to Fortune that a digital token backed by precious metals would be launched this year. More specifically, Cascarilla said that their goal is to place “any type of asset” on the blockchain, according to an article from Fortune.
Overall, Paxos wants to ensure that consumers are able to move assets and settle transactions with greater speed and lower fees. To make this into a reality, the company is starting by ensuring that the Paxos platform holds the same amount of dollars, precious metals, stocks, etc. as what they register with the blockchain. Cascarilla already said that Paxos is “getting pretty close” to the tokenization of the assets, has completed testing for stock market equities and bonds on the blockchain.
Presently, the CEO says there is no other cryptocurrency company that has an account with the Depository Trust company, which Paxos does. In this position, they may be able to put stock trading on the blockchain, but the platform requires approval from the US Securities and Exchange Commission before the dream can become a reality. The recent government shutdown put a massive damper on the wait.
Adding commodities to the blockchain, like gold, is part of the products that Cascarilla aims to add “definitely this year.” By putting precious metals on the blockchain, the industry is able to break up gold bars into smaller digital denominations, while also handling greater quantities with ease and lending the assets. Paxos would have the physical asset in a vault, but the digital representation would be placed on the blockchain, which effectively
“bridges those two worlds.”
Paxos was originally founded in 2012 under the name itBit but was later rebranded as Paxos, the blockchain-focused firm. Paxos has passed the approval process for a trust company charter in New York, which means that it effectively functions with the same privileges that a bank would have. These privileges include the custody of financial assets, and the company raised $65 million in funding to ensure that they could operate at this heightened capacity.