Liquid gold being poured into a cast to make a bullion bar at a Gold Reef City demonstration.
For the first time, investors can trade gold-backed futures contracts on a leading crypto derivatives exchange.
In addition to its spot market trading, PAX Gold is now available as perpetual and quarterly futures contracts on FTX.Using PAX Gold, a stablecoin backed by gold, FTX will allow traders to buy and sell gold futures contracts via digital assets.
A futures contract is an agreement to buy or sell a specified asset at a predetermined price at a specific time in the future.
The price of PAX Gold is tied to the spot price of one troy ounce of London Good Delivery gold, a standard measure for the London gold market.
With PAX Gold, a trader or investor owns the underlying physical gold stored in London vaults, which is unlike gold futures, exchange-traded funds or unallocated gold.
By offering more sophisticated trading vehicles for digital assets, FTX hopes to pave the way for eventual options and leverage trading for PAX Gold."Crypto trading is still a young market," said Paul Ciarvardini, Head of Trading at Paxos in an email to CoinDesk.
"PAX Gold futures on FTX shows how the market is maturing and that it is ready for more complex financial instruments."
FTX is operated by Alameda Research, a cryptocurrency liquidity provider that ensures the exchange has access to deep liquidity pools essential for the health and growth of the crypto derivatives market.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Paxos' Tokenized Gold Futures Are Now Trading on FTX Exchange
Published on Jan 14, 2020
by Coindesk | Published on Coinage
Mentioned in this article
The Cryptocurrency Act of 2020 Is 'Dead on Arrival,' Washington Tells Sponsors
An omnibus bill aimed at comprehensive reform of U.S. cryptocurrency regulation was introduced Monday by Rep. Paul Gosar.
In Fight Against Coronavirus, Governments Face Trade-Offs on Privacy
After draconian measures were implemented in China to halt the rapid infection rate of the virus, including movement restrictions, large scale surveillance and forced isolation, it seems such measures are working, with new cases in China declining.
Think a Privacy Law Will Stop Surveillance Capitalism? You Don't Know Google
Mar 20, 2020 at 15:45 UTCUpdated Mar 22, 2020 at 21:05 UTC.Alex McDougall is the co-founder of Bicameral Ventures, a venture capital firm focused on blockchain, interoperability, data and identity self-sovereignty, personalized AI and Web 3.0.The business model where users with the fewest privacy settings are the most profitable.
Tether Stablecoin Launches on Its Seventh Blockchain
Tether, the world's largest stablecoin by market value, is now live on the Bitcoin Cash network.