Paxos Discusses Plans for Precious Metal and Stock-Backed Cryptocurrencies
Paxos logo

Paxos Discusses Plans for Precious Metal and Stock-Backed Cryptocurrencies

When it comes to the general public, easily the biggest concern about cryptocurrencies is the perception that they amount to “fake money.” In response there have been those that have touted so-called stablecoins that are pegged to fiat currencies. Now, as Fortune reports, Paxos is looking to roll out a token backed by commodities, such as gold, as well as others tied to publicly traded stocks.

Paxos actually already has a stablecoin, which it launched six months ago. Dubbed Paxos Standard — or PAX — the U.S. dollar backed token is currently listed on a number of exchanges, including Binance, Bitpay, and others. Currently CoinMarketCap estimate PAX’s market capitalization at $112,981,150, with each coin valued at $1.01.

As for what coins Paxos is looking to introduce now, the companies CEO Chad Cascarilla told Fortune he wants to take “any type of asset and put it into a blockchain.” He went on to explain that the ultimate goal would be to trade assets with reduced settlement times and do so in a secure fashion. To do this Cascarilla says Paxos would retain the cash, gold, stocks, etc. to correspond to what’s in the blockchain. As he put it, “How you do it with a gold token is how much gold you have in a vault equals how many gold tokens outstanding. How do you do it with stocks? How many stocks do I have sitting in an account, equals how many stocks in the blockchain.”

Cascarilla says Paxos is getting closer to making such offerings a reality. In fact he predicts they could arrive sometime this year as the company has already tested blockchain transactions for bonds and stock market equities. Of course potentially getting in the way of any potential launch is the fact that Paxos would need to gain approval from the Securities and Exchange Commission if it were to offer crypto token tied to securities. Not surprisingly then, Cascarilla suggest they would start with commodities, saying, “[G]old is probably the most obvious,” adding the company would “definitely” launch that asset in 2019

Although Paxos’s upcoming efforts may still be described by some as cryptocurrencies, others will certainly take issue with that classification. Nevertheless, with these planned tokens, the company is pushing the possibilities of blockchain forward. It’s also notable that  getting the SEC involved could also bring some added legitimacy to their efforts if/when that were to happen. It remains to be seen about what the regulators will have to say about Paxos’s ideas but it will be interesting to see if stocks and blockchain technology can come together in the near future.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox
Travelers with two Best Western Credit Cards

Best Western Debuts Two New Rewards Credit Cards

After pausing applications for their previous rewards card, the hotel chain Best Western has unveiled a new pair of rewards credit cards with a new issuer. About the Best Western cards: Best Western is partnering with First Bank & Trust and Mercury Financial to introduce two new co-branded credit cards. First up is the no-annual-fee Best Western Rewards Visa Signature Card. With this card, customers can 4x points on Best...
Marriott Bonvoy card and a woman on vacation

Marriott Bonvoy Bold Card Launches Travel Contest

Chase and Marriott Bonoy have unveiled a special contest while continuing to offer its best-ever welcome bonus. About the welcome bonus and Bold Chat Court Contest: Marriott Bonvoy and Chase have launched a special opportunity called the Bold Chat Court contest. As part of this contest, 10 lucky travelers will be awarded 500,000 Marriott Bonvoy points (for a total of 5 million) as well as $5,000. For this contest, the...
Bilt and All Reward logos

Bilt Adds 2 New Transfer Partners Including First 3:2 Transfer Rate

Bilt is once again expanding its travel transfer rewards program — and is even breaking the mold with one new partner. About the new additions to Bilt: This week, Bilt launched partnerships with two more travel brands: TAP Air Portugal and Accor. As a result, Bilt members will now be able to transfer their points to Miles&Go and ALL Reward, respectively. In total, Bilt now has 18 transfer partners including 13...

2025 SoFi Checking and Savings Review

 Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. That was later sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind is SoFi’s acquisition of Golden Pacific...
Fioney Top 10 Must-Read Personal Finance Articles Septemeber 2024

Top 10 Personal Finance Articles of the Month — September 2024

Welcome to Fioney's look at the top 10 personal finance articles of the month. On the first Friday of each new month, we look back at some of our favorite posts published in the weeks prior and highlight them right here. This includes a mix of sites that have become staples of our lists as well as many first-timers. To start things off this month, we'll look at some articles...