Digital Token Backed by Precious Metal will Be Definitely Launched this Year

Chad Cascarilla, CEO of Paxos, has declared that the company’s digital token backed by precious metals will be definitely launched this year. Paxos is a company based in New York that already offers a dollar-backed cryptocurrency named stablecoin. Stablecoin, Paxos Standard, was launched six months ago.

The plans to introduce a new cryptocurrency backed by precious metals were confirmed during an interview with Fortune’s Balancing the Ledger on March 11.

Cascarilla was asked whether Paxos is working toward a gold-backed cryptocurrency, and he admitted that “it is something we will see definitely this year.” The tokenizing of commodities is a new concept, which Paxos implemented by tokenizing dollars. Now, they want to take “any type of asset and put it into a blockchain,” Cascarilla said, and he added that “precious metals are really obvious ones (assets), and gold is probably the most obvious.”

However, tokenizing commodities is not simple. In order to make a commodity-backed cryptocurrency work, Paxos must hold the same amount of inventory of the commodity in the “real world” as are registered on the blockchain. Cascarilla explained: “How you do with a gold token is how much gold you have in a vault equal how many gold tokens outstanding.” In addition to precious metals, Paxos plans on tokenizing publicly traded stocks during 2019 as well.

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