Cryptocurrency trading platform and token issuer Paxos just launched its gold-backed crypto asset, approved by the New York State Department of Financial Services.
The new NYDFS-regulated PAX Gold (PAXG) is for investors who trust in gold and have no interest in dropping it. PAX Gold, a digital token on the Ethereum blockchain, is the actual legal title to a bar of gold stored in the Brink’s London vault. By combining the portability of digital assets with the traditional benefits of physical gold, it aims to bridge the two and end the battle over which one is better: gold or crypto.
Starting on October 1st, Salt Lending is offering support for PAX Gold as the latest collateral type for clients who want to use their digital assets as collateral to secure a USD loan. According to the announcement,
“By tokenizing gold, Paxos is bringing the benefits of physical gold ownership to the cryptocurrency community…
As a digital representation of physical gold, PAX Gold has the potential to increase the overall liquidity of gold by connecting traditional markets with cryptocurrency markets.”
Global crypto lending provider Nexo is also leveraging PAX Gold by offering investors instant access to their gold wealth in over 45 fiat currencies via same/next day bank transfers across 200+ jurisdictions.
According to the announcement,
“Now with PAX Gold allowing fractional ownership of gold in а frictionless manner via blockchain technology, the same concept is available for as little as a few hundred dollars. Nexo accepting the digital representation of gold as collateral makes what was previously reserved to the privileged ones available en masse to all.”
While the Paxos offering is redefining “digital gold,” the moniker is claimed by Bitcoin enthusiasts who say that the decentralized cryptocurrency, which is not tethered to any precious metal, central bank or government, maintains the critical edge due to its lack of censorship and reliance on intermediaries.