In an interview on March 11, the Chief Executive Officer of Paxos Chad Cascarilla said that the Blockchain based trust company was definitely going to launch its long-promised digital token backed by precious metals this year.
During the interview, Cascarilla was asked whether the company was developing a gold-backed cryptocurrency and the CEO responded that that was definitely going to come out in 2019. He said that they were excited by the idea of being able to take a commodity and tokenize it. He said that precious metals were the right choice and that gold was the most obvious option of them all.
However, to be able to make this idea into reality, Paxos will need to ensure that it holds an equal physical amount of precious metal inventory in the real world as that registered on its Blockchain.
Cascarilla stated that his company’s status as a financial institution allowed them to use the banking system to make sure that Paxos actually held backing assets that would correspond to the assets on their Blockchain.
The CEO stated that while the plan was moving forward to launch this new precious metal-backed digital asset this year, the company had not yet set an exact launch date.
Cascarilla also referred to the Paxos Standard (PAX), the company’s Ethereum-based stablecoin backed by the US Dollar that was launched in September 2018. He said that this stablecoin was different from the others in that it was completely audited, strongly regulated and had been approved by the NYDFS (New York Department of Financial Services).
He also said that the stablecoin was relatively liquid in comparison to other stablecoins.
The company had initially been founded in 2012 as itBit, a Bitcoin exchange. However, later the company was renamed Paxos and was restructured to become the Blockchain-focused company it is today.
Paxos now holds a trust company charter in New York State, because of which the company has the same privileges as a traditional bank. This includes the power to take custody of assets from mainstream financial markets.
The change in strategy has worked well for the company. Last year in May, the firm stated that it has successfully raised $65 million from its investors to further develop its operations.
The company also reported that its stablecoin PAX crossed $5 billion in transaction volumes in December last year. At that time, the stablecoin had a market capitalization of more than $174 million, which at this time has dropped to about $113 million.