on the crypto
A gold-backed digital asset created by Paxos has been launched for trading on the cryptocurrency exchange Binance - Find out here quotation in real time.
A new crypto product for investing with gold
Since August 26, Binance clients can trade PAX Gold (PAXG) against the exchange's stablecoin BUSD and trade Binance coin (BNB) tokens in the same way as bitcoin (BTC). PAX Gold “will offer [its] users an easy and safe opportunity to gain exposure to real and regulated gold,” said Rich Teo, co-founder and CEO of Paxos Asia.
Paxos, a New York-based cryptocurrency exchange and stablecoin issuer, launched the gold-backed stablecoin last September. Each Ethereum-based token is backed with one ounce of physical gold stored in Brink's London vault, and traders can hold a minimum value of $ 1.
The launch when gold is at an all-time high
Binance's decision to add support for PAXG comes nearly three weeks after the price of gold hit a record high of $ 2.075 an ounce. Historic inflation coverage has increased 27% this year, and analysts at Goldman Sachs expect prices to rise further to $ 2.300 over the next 12 months.
“Gold is a resource that has been of sure value from generation to generation. With PAX Gold now on Binance, investors can easily get and trade gold with one click, ”said Changpeng“ CZ ”Zhao, CEO of Binance.
Pax Gold has been approved by the New York Department of Financial Services. This week, CF Benchmarks announced that it has launched a benchmark price index for Pax Gold against the US dollar.
The index will provide daily settlement and spot rate, updated every second, according to the announcement. With traditional gold markets operating only on weekdays, PAXG “opens up new opportunities for financial markets,” said Sui Chung, CEO of CF Benchmarks.
What is PAX Gold
From a semi-technical point of view, PAX Gold is an ERC-20 token built on the Ethereum blockchain, which means it can be integrated with any service, exchange or wallet that integrates the ETH protocol.
Paxos CEO and co-founder Charles Cascarilla alluded to the fact that physical gold is difficult to trade or divide and even more difficult to leverage than other investments. Therefore, the original goal of the project was to upgrade physical gold investments to the 21st century using Ethereum.
Of course, its launch is also expected to have the effect of increasing the liquidity of the major cryptocurrencies, which, in turn, would allow a variety of financial products to be built around that token.
