Paxos, the trusted firm of Blockchain, will launch this beautiful stable with metal backing later this year
Paxos Technology Solutions LLC, a fintech company based in New York that focuses on “mobilizing” money, gold, securities and other assets at “Internet speed”, plans to introduce a digital token that will be supported by precious metals such as gold .
Chad Cascarilla, the CEO of Paxos, which has received $ 93.3 million in funds since it was established in 2012, revealed in an interview (published on March 11, 2019) with Balancing the Ledger of Fortune that the digital token with metal backing Precious Paxos “definitely” will be released sometime this year.
Cascarilla, a graduate in finance from the University of Notre Dame, explained that the development of a gold-backed cryptography token could potentially be useful as it would allow investors to “take a [real-world] merchandise [and] tokenize it The proponents of this method argue that by tokenizing real-world assets, it becomes easier, faster and more efficient to transact.
The amount of gold you have in vaults should be equal to the number of gold tokens
When elaborating on how traditional assets can be token in block chains, Cascarilla commented:
To put something [on] a blockchain [network], you must make sure you have the right amount of inventory in the real world compared to what is [kept on] the blockchain. What you do with a gold chip is the amount of gold you have in a vault equal to the amount of gold chips outstanding.
Cascarilla, a former financial analyst at Goldman Sachs, added that Paxos’ status as a licensed financial services company allows him access to the traditional banking system, in order to guarantee and prove that they have enough assets in reserves to support the amount of chips that have. I have issued.
Commenting on the difference between the Paxos Standard Token (PAX) based on Ethereum and other stable ones backed by USD 1 to 1 introduced last year, Cascarilla said that the current PAX supply has been fully audited and is approved and regulated by the New York State. Department of Financial Services (NYDFS). According to Cascarilla, the stablecoin PAX also has a high level of liquidity.
Paxos completed the Series B financing round of $ 65 million in May 2018
Launched for the first time as a bitcoin trading platform (BTC) called itBit, the start of the initial stage funded by the company was recently renamed Paxos and now runs a fiduciary company in New York. This allows Paxos to access some of the same banking services that are available to large financial institutions. Reportedly, this includes the ability to serve as custodian of traditional financial assets.
In May 2018, Paxos had raised $ 65 million through a Series B financing round, led by RRE Ventures, Liberty City Ventures and prominent investor Jay Jordan. In December 2018, the total transaction volume of the PAX token (to date) had exceeded $ 5 billion. This, only three months after the currency backed by the USD was launched (in September 2018). At that time, the market capitalization of all outstanding PAX tokens was approximately $ 174 million.
At the time of publication, the market capitalization of PAX tokens is $ 113 million based on data from CryptoCompare.