Paxos’ Precious Metal-Backed Cryptocurrency to Launch This Year, CEO Says
Chad Cascarilla, CEO of blockchain trust company Paxos, has revealed that the company’s gold-backed cryptocurrency will be launched in 2019.
Blockchain trust company Paxos’ digital token backed by precious metals will be launched "definitely this year," said Paxos CEO, Chad Cascarilla in an interview with Fortune’s Balancing the Ledger on March 11.
During the interview, Cascarilla was asked whether Paxos is working on a gold-backed coin, wherein he replied that “it is something we will see definitely this year.” “We are excited about the concept of being able to take a commodity, and I think precious metals are really obvious ones, and gold is probably the most obvious and being able to tokenize it,” Cascarilla added.
In order to implement the concept, Paxos has to ensure it holds the amount of inventory “in the real world” equal to the one registered on blockchain. Cascarilla explained:
“In order to put something in a blockchain, you have to make sure you have the right amount of inventory in the real world versus what is in the blockchain. How you do with a gold token is how much gold do you have in a vault equals how many gold tokens outstanding.”
Cascarilla said that the firm’s status as a financial institu