Paxos to launch a stablecoin backed by precious metals "this year"

12 Mar, 2019
by David Borman
News
Paxos to launch a stablecoin backed by precious metals this year

Fortune has reported that Paxos, a crypto company that currently offers a USD backed stablecoin, is planning on launching another coin this year, one that will be backed by one or more precious metals, plausibly gold.

In an interview with CEO Chad Cascarilla, Fortune revealed that Paxos is currently working hard to obtain enough physical stores of precious metals to back up the stablecoin they plan to launch. That being said, Cascarilla did say "I think we’ll see it in 2019." He also elaborated on the need to have enough physical reserves to cover the new coin:

"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."

Cascarilla did not actually confirm that gold would be the metal used to back up the token, though it does make perhaps the most sense and a lot of experts in the industry expect the coin to be gold backed. During the interview Cascarilla did mention that "gold is probably the most obvious."

Overall this could be an exciting step forward for digital assets, and a gold backed stablecoin may be taken more seriously than most other cryptos. Still, the market already has multiple stablecoins pegged to fiat so it is debatable how this one will be received.

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Read more about: Paxos (PAX)

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