Paxos, the New York-based exchange and stablecoin issuer, has launched a gold-backed crypto-asset called Pax Gold (PAXG). PAX Gold: Things To Know About Gold-Backed Cryptocurrency.
It is the first company to offer a gold-backed virtual currency approved by the New York Department of Financial Services (DFS).
Some of the Bitcoiners believe in real money, such as gold. For such bitcoiners, this is a customized product where a gold asset backs the virtual currency.
“DFS is committed to encouraging innovation while providing regulatory oversight to keep New Yorkers and the rapidly evolving financial services market safe and sound,” said Superintendent of Financial Services, Linda Lacewell, in a statement.
Here are the main things to know about PAX Gold (PAXG) on the Digital Blockchain;
1) PAX Gold is constructed as an Ethereum token. This is to make it simpler to integrate with exchanges, wallets, lending platforms, and other crypto products.
2) PAX Gold has the flexibility and accessibility of crypto assets, representing physical, secure, gold vaulted, without storage fees.
3) The underlying gold remains secure in London vaults. Even though PAX Gold on the Ethereum blockchain is easy, cheap and instantly transferable 24/7.
4) Withum, a nationally top-ranking auditing company, is also involved by Paxos to check, on a monthly basis. The entire supply of PAX Gold tokens is consistent with fine troy ounces of gold held in custody on behalf of Paxos Trust Company, LLC.
5) If your purchase is among the first 7000 PAX Gold tokens, you’ll be eligible to receive a 2% cash rebate.
6) Each PAX Gold token is a fine troy ounce to the serial number of a specific bar. When you own PAX Gold, you own the underlying physical gold.
The importance of gold has decreased in the global economy, partly because of this existential issue in an increasingly digitized world.
While it is possible to trade efficiently in gold derivatives, ETFs and unallocated gold, these are synthetic representations on limited, narrow marketplaces – and none of them offers real gold title ownership, Chad Cascarilla, Paxos’ CEO, said.