Bridging the Gap: Paxos Set to Introduce a Gold-Backed Cryptocurrency

Since its inception, blockchain technology has been the sole underpinning technology of cryptocurrencies of all sorts. Although the technology can be applied to other innovative use cases as well, it has garnered huge popularity from cryptocurrencies and other related virtual assets.

Well, it seems cryptos would not be the only occupant of the blocks for long as a New York-based crypto firm named Paxos has decided to bridge the gap between traditional stock trading and virtual currencies. The company, which happens to be the first crypto firm licensed in New York, is set to bring traditional stock trading to the blocks. Starting with precious metals such as gold, Paxos is super ready to change the game in no time.

During an interview with Fortune, the co-founder and chief executive officer of Paxos, Chad Cascarilla, explained that the aim of merging the two worlds into one is to enable a more efficient environment for moving and settling transactions quickly and securely. This merger will also attract lower fees as most of the ‘middleman’ positions would be cut out of the chain. He added that the plan is already underway and should be launched officially this year.

Although Paxos thinks the company is very much prepared to do this, the U.S. Securities and Exchange Commission (SEC) will have to sign off on this for the company to proceed any further. Cascarilla also explained that this wouldn’t be an easy task but they are prepared to pull it off. To do this, he asserted that they will need to hold the same amount of inventory registered in the real world on the blockchain too. That is, both the real world and the proposed blockchain will have to hold the same amount of dollars, stocks, or precious metals to maintain a balance between both worlds.

Besides exchanging Bitcoin, Paxos already has a dollar-backed crypto coin called the Paxos Standard (PAX). This stablecoin was launched late last year and I think the company is ready to introduce another innovative idea. And, of course, virtual currencies backed by precious metal is a good way to go in the industry today. This will open doors to more opportunities as well as make trading way better and easier than what we have today.

As the only crypto firm with an account at the Depository Trust Company, I think they have a better shot at bringing this dream to fruition.