Paxos Expands its Gold-Backed Token’s Ecosystem
- The new partnership with Alpha Bullion allows PAXG token holders to redeem in small sizes of gold.
- The gold-backed token is now available for trade against the USD, EUR, BTC and ETH on the Kraken exchange.
Gold bars concept. Freepik
Paxos, the issuer of a gold-backed stablecoin, has entered into a new partnership expanding PAX Gold (PAXG) holders option to redeem physical gold with their tokens, the company announced in a blog post on 28 October.
According to the press release, the company partnered up with Alpha Bullion to offer the holders of its gold-backed stablecoin more versatility.
The PAXG token was already backed with real gold bars, meaning that holders of the token legally owned physical gold, but now thanks to this partnership owners of the token can use it to redeem in small sizes of gold, ranging from 1 gram to 1 kilogram.
The press release reads:
“Alpha Bullion allows customers to use their PAXG tokens to get gold products ranging from one gram to one kilogram. Customers with 430 PAXG can redeem full gold bars from Paxos directly, but Alpha Bullion lets customers get physical gold with smaller amounts of PAXG.”
The company has also announced that it has expanded the PAX Gold ecosystem with new cryptocurrency exchange listings.
Namely the token has been added for trade against USD, EUR, BTC and ETH on the Kraken exchange, with it also being available on the HitBTC and Bithumb Global platforms. The company is planing to add the token to even more exchanges in the future.
Paxos investors can also participate in crypto-lending programs, allowing them to earn interest on their tokens. Genesis Lending, Celsius, SALT and Nexo are among the companies that offer PAXG-backed loans.
- PayPal USD (PYUSD) will be issued by Paxos and the Ethereum blockchain, and is backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents.
- The company said the stablecoin can be redeemed for U.S. dollars at all times, and exchanged for any other crypto supported by the platform, including BTC, ETH, BCH, and LTC.
PayPal logo and sign in front of PayPal Holdings headquarters building in North San Jose Innovation District in Silicon Valley, San Jose, California, USA, 17 March, 2019. Michael Vi/Shutterstock
- Canadian customers who have no funds in their Paxos accounts will have their accounts automatically closed on 9 May, while the rest will be disabled on 2 June.
- Paxos is not the only company to be leaving Canada, with cryptocurrency exchanges dYdX and OKX saying they will wind down their businesses in the country due to “new regulations”.
- Both crypto exchange Coinbase and stablecoin issuer Paxos have stated that they will no longer accept or initiate U.S. dollar payments through Silvergate Bank.
- The two noted that cash transactions for institutional clients will now be carried out through their other banking partners, and that the move had no impact on pound and euro payments.