Paxos’
PAX Gold Becomes First Tokenized Gold Product to Receive Regulatory Approval
As for Paxos’ second
asset-backed token that it had authorized on Thursday by the NYDFS, it
pertained to PAX Gold (PAXG), a tokenized version of gold that represents
real, physical gold.
Commenting on the NYDFS’
decision, Paxos chief executive and co-founder Charles Cascarilla stated that
his New York-chartered trust company “are grateful for the opportunity to
offer PAX Gold, the first tokenized gold product to receive regulatory
approval. By releasing this regulated product that makes it easy to own or trade
gold, we’re using blockchain technology to democratize access to a
multi-trillion-dollar market and bring gold into the digital future.”
In its PAX Gold whitepaper—last updated on
September 5, 2019—Paxos revealed that because it has managed to build relationships
with large institutions in the gold market over the years, “it has been able
to secure partnerships with top gold providers, vaults and miners to ensure
PAX Gold is only supported by the highest-quality gold and stored in some of
the most reliable vaults in the world.”
