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.