A gold-backed digital asset created by Paxos will soon launch for trading on cryptocurrency exchange Binance.
- From Aug. 26, Binance customers will be able to trade PAX Gold (PAXG) against the exchange's own stablecoin BUSD and exchange token Binance coin (BNB), as well as bitcoin (BTC).
- PAX Gold "will offer [its] users an easy and safe opportunity to gain exposure to real, regulated gold,” said Rich Teo, Paxos co-founder and CEO Asia.
- A New York-based crypto exchange and stablecoin issuer, Paxos launched the gold-backed stablecoin last September.
- Each Ethereum-based token has the legal title to an ounce of physical gold stored in the Brink’s London vault, though traders can own as little as $1 worth.
- Binance’s decision to add support for PAXG comes nearly three weeks after gold’s price reached a record high of $2,075 per ounce.
- The historical inflation hedge has rallied by 27% this year and analysts at Goldman Sachs expect prices to rise further to $2,300 in the next 12 months.
- "Gold is an asset that has had enduring value from generation to generation. With PAX Gold now on Binance, investors can easily get and trade gold with the click of a button," said Changpeng "CZ" Zhao, CEO of Binance.
- Pax Gold has been approved by the New York Department of Financial Services.
- Also announced Tuesday, CF Benchmarks has launched a benchmark price index for Pax Gold against the U.S. dollar.
- The index will provide a daily settlement and spot rate, refreshed every second, according to an announcement.
- With the traditional gold markets only operating on weekdays, PAXG "opens new opportunities for financial markets," said Sui Chung, CF Benchmarks CEO.
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