Paxos – a blockchain trust company – announced launching of a digital token backed by precious metals and this happens this year for sure. The CEO of Paxos, Chad Cascarilla, shared his thoughts regarding the launch in the interview with Fortune on March 11.
What is Paxos?
Paxos is a regulated financial institution that has already offered a stablecoin – Paxos Standard (PAX). It is the first Ethereum (ETH)-based stablecoin which was released by the company last September. It is backed 1:1 by American dollar, and is approved by the New York State Department of Financial Services (NYDFS), which means it is fully audited and highly regulated.
Paxos has more or less the same features and privileges as a bank, it is able to take care of mainstream financial assets. In May 2018, it has raised $65 million from investors, which in December that year PAX exceeded $5 billion worth of transaction volumes.
As we said above, the CEO of Paxos, Chad Cascarilla, gave an interview where he told about a new Paxos’ digital coin. He assured everyone that the coin will be released definitely this year. The most important thing for the company is the ability to take commodity, thus they decided to back the coin with precious metals which are the most obvious.
To implement such a concept, the company has to ensure that the amount of inventory “in the real world” equals the one registered on blockchain. Cascarilla said:
“In order to put something in a blockchain, you have to make sure you have the right amount of inventory in the real world versus what is in the blockchain. How you do with a gold token is how much gold do you have in a vault equals how many gold tokens outstanding.”
The CEO said that the company’s status of financial institution helps them to ensure the amount of assets “in the real world” and on blockchain. The exact date of launch has not set yet.
You can see the full interview below:
Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/