Paxos’ Metal-Backed Cryptocurrency to Launch This Year
Paxos, a Blockchain trust company will be launching it’s digital token backed by precious metals this year, according to Paxos CEO, Chad Cascarilla in an interview with Fortune’s Balancing the Ledger on March 11th.
In the course of the interview, Cascarilla was asked whether Paxos is working on a gold-backed coin, and he replied thus “it is something we will see definitely this year.” “We are excited about the concept of being able to take a commodity, and I think precious metals are really obvious ones, and gold is probably the most obvious and being able to tokenize it,”
In order to implement the concept, Paxos has to ensure it holds the amount of inventory “in the real world” equal to 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.”
According to Cascarilla, the firm’s status as a financial institution allows the firm to utilize the banking system to ensure that they hold backing assets “in the real world” that correspond to the number of assets on a blockchain. While the company is planning to launch its precious metal-backed coin this year, Cascarilla said that Paxos has not set the exact date yet.