Crypto users may see a new Paxos coin this year that will be backed by precious metals like gold and publicly traded stocks, according to Paxos CEO.
More than a month since news of PayMon, a gold-backed cryptocurrency developed by four Iranian banks, broke out, Paxos created a buzz with its new coin.
New York-based cryptocurrency company Paxos may be launching another stablecoin just months from now. But the new stablecoin will no longer be backed by dollars like how Paxos Standard (PAX) is, but by precious metals and publicly traded stocks.
In an interview on Fortune’s Balancing the Ledger, Paxos CEO Chad Cascarilla talked about his plans of adding other assets to the blockchain. The goal, according to him, is to move these assets and complete transactions with lower fees, less waiting time, and much lower risks.
“How you do it with a gold token is how much gold you have in a vault equals how many gold tokens outstanding. How do you do it with stocks? How many stocks do I have sitting in an account, equals how many stocks in the blockchain.”
Paxos intends to tokenize more assets, including dollars, stocks, precious metals, and others. Tests are complete, which leads Cascarilla to eye 2019 as the target year to launch.
Without any definite name, the new stablecoin from Paxos will likely use gold, he said.
Check out our latest $PAX metrics: $PAX average redemption time is now down to 3 hours 24 minutes! #pax #stablecoin pic.twitter.com/FGSMFAMu7Z
— Paxos Standard (PAX) (@PaxosStandard) March 7, 2019
Before launching the sister coin to Paxos Standard, however, the company must first get the nod from the US Securities and Exchange Commission. Paxos, despite being the first-ever cryptocurrency company to be licensed in New York, would still have to wait before they can transfer traditional securities to the blockchain.
The new gold-backed cryptocurrency will join the growing list of stablecoins, including Paxos Standard, Tether, and USD Coin.
Meanwhile, Korean crypto exchange ProBit listed Digix Gold Token (DGX) earlier this month, while Blucon, a global payment platform, integrated DGX into its payment card in February.
DGX is a gold-backed token running on the Ethereum network.
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