Crypto Exchange Coinbase Adds Gold-Pegged Stablecoin PAXG to Listing Roadmap

Coinbase, the largest crypto exchange in the US, has announced the possibility of listing a gold-pegged stablecoin.

In a new post on the social media platform X, Coinbase says it’s added PAX Gold (PAXG) to its listing roadmap.

A placement on Coinbase’s roadmap doesn’t guarantee a future listing, but it announces the potential for it to be listed in order to promote transparency and prevent possible insider trading.

PAX Gold is an Ethereum (ETH)-based token backed by physical gold and issued by blockchain infrastructure platform Paxos.

Says the project,

“PAXG offers investors a cost-effective way to own investment-grade physical gold with all the benefits of the blockchain. Each Pax Gold (PAXG) token is backed by one fine troy ounce of gold, stored in LBMA (London Bullion Market Association) vaults in London. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company…

The allocated gold that backs PAXG is … audited monthly. Paxos is a trust company and custodian regulated by the New York State Department of Financial Services.”

PAXG is not the only gold-backed stablecoin on the market.

Tether, the company behind several leading cryptocurrency stablecoins, including USDT, announced last week that it holds $770 million in physical gold bullion reserves backing its Tether Gold (XAUT) stablecoin.

Launched in 2020, XAUT is a digital asset pegged to the price of one ounce of physical gold.

According to a Tether press statement, each token represents direct ownership of gold bars held in secured Swiss vaults.

Generated Image: Midjourney