Paxos (PAX) Gold-Backed Token Finds Immediate Adoption
The newly created Paxos gold-backed digital asset finds its way into exchanges and crypto lenders.
Paxos Trust Company LLC, the issuer of the PAX dollar-pegged stablecoin, sees its Paxos Gold (PAXG) coin immediately adopted within the crypto ecosystem. The gold-backed digital asset is not merely representing the price of gold but stands for actual rights to owning physical gold in a vault.
Each coin is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in a gold vault by Brinks, one of the most established vault services in the UK.
The asset is approved by the New York Department of Financial Services, just days after giving the green light to Binance and its Binance USD (BUSD). The regulator has spoken in favor of financial innovation.
"At Paxos, we appreciate the DFS and Superintendent Lacewell's commitment to protecting consumers while also supporting financial innovation in New York,” said Paxos CEO Charles Cascarilla.
“We are grateful for the opportunity to offer PAX Gold, the first tokenized gold product to receive regulatory approval. By releasing a regulated product that makes it easy to own or trade gold, we're using blockchain technology to democratize access to a multi-trillion-dollar market and bring gold into the digital future," he said.
Right after the coin’s launch last Friday, the asset was included in a couple of crypto lending mechanisms. NEXO, one of the leading crypto lending firms, now accepts the gold-backed coin as collateral. By extension, SALT, which operates after NEXO bought up its assets, also offers to take in the coin to issue new loans.
The tokens of Paxos have been expanding their presence within the crypto space. The dollar-backed coin PAX now has grown its supply to above 230 million, while expanding its share of crypto trading to 1.43%. Together with TrueUSD (TUSD), a set of smaller dollar-pegged coins are chipping away at the influence of Tether (USDT), which saw its share fall from above 97% in recent months down to 94% of all trading.