Paxos Trust Company Issues First Digital Asset Redeemable for Physical Gold
Paxos Trust Company announced today the issuance of their digital asset Pax Gold (Ethereum Ticker: PAXG). This is the first “crypto-asset redeemable for physical gold.” Paxos gained approval from the New York State Department of Financial Services (NYDFS).
One Pax Gold asset represents “one fine troy ounce of London Good Delivery gold stored in professional vault facilities in London.” Traded on the Ethereum blockchain, owners of PAXG have a highly liquid digital asset backed by physical gold.
This makes the underlying asset highly accessible as anyone in the world can access the ERC-20 token on the decentralized and distributed Ethereum Blockchain. It is the only token redeemable for LBMA-accredited Good Delivery gold bullion bars. As well, transfer of ownership becomes seamless though the blockchain should you want to trade your gold-backed digital asset for another one.
Charles Cascarilla, the CEO and Co-Founder of Paxos stated, “In a digital and global financial system, owning physical gold is a cumbersome, outdated investment; it’s not easy to trade, divide, move or leverage against other investments…PAX Gold solves these fundamental challenges. It’s as easy to trade as ETFs or bitcoin, is extremely mobile and divisible, and it also gives holders ownership to the highest quality gold in the world.”
As part of this groundbreaking announcement, Paxos is offering a promotional 2% cash rebate on purchases of the first 7,000 tokens (value ~$10.5M USD).
The minimum purchase amount is .01 t oz or ~$15 USD. The company notes comparable minimum purchases. The only other option listed with a reasonable minimum purchase for your everyday person is “Major Gold ETFs” where one share is currently $150 USD.
This news is the type that shows the power of distributed ledger, or blockchain, technology and gives us a taste of what’s to come. This new gold market is also extremely accessible considering anyone in the world with access to the Ethereum blockchain can buy or sell PAXG gold-backed digital asset.
Now, your crypto portfolios can start to include gold.