Paxos Plans To Launch Cryptocurrency Backed By Precious Metals

Paxos’s new digital token is to be launched “definitely this year,” said Paxos CEO Chad CASCARILLA in an interview with Fortune. This one will be backed by precious metals.

According to CEO, precious metals are a best-suited commodity for tokenization, and gold is probably the first candidate for this role. To implement the project, the company must ensure it holds the amount of inventory “in the real world” so that it is equal to the volume registered in the blockchain. As Chad CASCARILLA explained,

“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 him, the status of Paxos company as a financial institution allows it to use the banking system to ensure that it has real assets that correspond to the number of assets in the blockchain. Still, Paxos has not set the exact date of issue of this token yet.

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