CEO of Paxos, Chad Cascarilla said in an interview that blockchain trust company Paxos’ digital token backed by precious metals will be launched “definitely this year.” He made these comments on March 11 in an interview with Fortune’s Balancing the Ledger.
Cascarilla was asked, during the interview, whether Paxos is working on a gold-backed cryptocurrency. To the question, he replied that it is something people will see definitely this year. He added that they are excited about the concept of being able to take a commodity, being able to tokenize it. He thinks precious metals are really obvious ones, and gold is probably the most obvious metal to be considered.
Notably, Cascarilla mentioned that the firm’s status as a financial institution allows it to use the banking system to make certain that they hold backing assets “in the real world” that correspond to the number of assets on a specific blockchain. Cascarilla further mentioned that Paxos has not set the exact date yet to launch its precious metal-backed coin this year.
Paxos Standard (PAX)’s Ethereum (ETH)-based stablecoin was launched last September and is backed 1:1 by the U.S. dollar. Cascarilla acknowledged that it differs from other stablecoins in that it is highly regulated, fully audited, relatively liquid and approved by the New York State Department of Financial Services (NYDFS).
It is to be noted that the startup was initially founded in 2012 as a Bitcoin exchange itBit. Later on, it rebranded as blockchain-focused firm Paxos. Furthermore, Paxos holds a trust company charter in the state of New York. This essentially grants it some of the same privileges as a bank, including the ability to take custody of conventional financial assets. Last May, Paxos purportedly raised around $65 million from investors to shore up its operations.