Binance and Paxos Stablecoin Latest to Get US Regulator Consent

Over the course of the past few weeks, the global cryptocurrency community bore witness to two major announcements related to stablecoins - with the first being the launch of Paxos's gold-backed Ethereum token, PAX Gold, and the other being the release of Binance's cryptocoin backed by the United States dollar.

Each PAXG token is backed by 1 fine troy ounce of London Good Delivery gold that has been stocked across discreet vaults spread out around London.

"PAX Gold stands out because we uniquely have deep experience in both the traditional gold market as well as in asset tokenization. In the traditional gold market, we have a suite of products that have been used by the legacy gold trading markets. For example, our Confirmation Service has been used to confirm over 500k gold trades worth over $1T. Being this ingrained in the gold market has enabled us to draw on our relationships with leaders in the space - like Brink's and INTL FCStone - to develop the operational infrastructure to make PAX Gold available and redeemable for physical gold."

As mentioned previously, PAXG is an ERC-20 token that has been built on the Ethereum blockchain and is backed by physical gold, meaning it can be traded and moved anywhere around the globe with the touch of a button.

The tokens are fully-backed by physical gold that is attested by a third-party auditor on a monthly basis.

As things stand, PAX Gold is the only gold token available on the market today that can be exchanged in place of LBMA-accredited Good Delivery gold bullion bars.

Institutional players dealing with PAXG have the option of redeeming their tokens in favor of unallocated Loco London Gold.Using Paxos' native exchange platform, investors can convert their PAXG holdings into fiat, physical or unallocated gold.

PAXG holders have the option of looking up niche details related to their stored gold reserves - a feature that is quite rare these days.

Talking about the advantages of PAXG, Chang pointed out that by tokenizing gold, it will become easy for investors to acquire the precious yellow metal without having to physically store it.

"By putting gold on the blockchain and tokenizing it, we're making it easier to trade, divide and leverage gold against other investments. We're making PAX Gold as easy to own and trade as Bitcoin. We are also democratizing investment in gold as there is no minimum investment in PAX Gold and it can be sent anywhere in the world, 24/7.".