According to the CEO of Paxos (Chad Cascarilla), the company (a blockchain trust company) will be launching a digital token backed by precious metals this year. The revelation was made on March 11 during an interview where Chad Cascarilla spoke with Fortune’s Balancing the Ledger.
During the interview when Cascarilla was asked if Paxos was working on coin backed by gold, the CEO replied by saying “it is something we will see this year. We are excited about the concept of being able to take a commodity, and I think precious metals are pronounced ones, and gold is probably the most obvious and being able to tokenize it.”
However, to make this concept work flawlessly, it is imperative for Paxos to make sure that it holds the amount of inventory in the real world equal to the amount stored on the blockchain. Cascarilla further explained “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 status of the firm as a financial institution permits them to utilize the entire banking system to make sure that they hold backing assets in the real world which essentially compare to the number of holdings on a blockchain. According to Cascarilla, when the firm has plans of floating its coin backed by precious metals in 2019, Paxos is yet to come out with an exact date.
Concerning PAX (Paxos Standard, the company’s ETH (Ethereum) based Stablecoin which is necessarily backed 1:1 by USD (US-Dollar) was launched last year in the month of September. According to a statement made by Cascarilla, It varies from other stablecoins as it is wholly audited, regulated and approved by the NYDFS (New York State Department of Financial Services) and is also liquid in comparison.
Found in the year 2012 as BTC (Bitcoin) Exchange ‘itBit,’ over a period of time was rebranded as Paxos (a blockchain focused firm). The firm now holds a trust company in New York city giving the firm some privileges as a bank. This has also enabled the firm to take over custody of mainstream financial assets. According to reports, last year, Paxos raised $65 million to commence its operations.