One PAX Gold is worth more than 10,000 RMB.
Editor’s note: This article comes from the strategic cooperation blockchain media “Odaily Planet Daily” (Public ID: o-daily, < a href="https://download.odaily.com/">APP Download)
Beijing time on September 5th at 22:00, the US financial technology company Paxos Trust Company (hereinafter referred to as Paxos) announced the launch of the first convertible gold approved by the New York Financial Services Department (NYDFS) gold coin PAX Gold(PAXG).
In September 2018, Paxos was approved by NYDFS with another US financial technology company, Gemini Trust, to issue a 1:1 anchored stable currency, Paxos Standard (PAX). After a year, Paxos launched the PAXG, an encrypted gold coin that can be anchored with gold.
PAX Gold is a digital asset, a token representing a troy ounce of London standard delivery bars in a London professional vault. Any holder of PAX Gold has the corresponding gold under the hosting of the Paxos Trust Company. Therefore, the value of PAX Gold will follow the real-time market price of gold.
Each PAXG token represents 1 troy ounce of physical gold on a particular serialized gold bar. If the customer has enough PAXG to represent the entire gold bar, they can use these tokens to redeem a gold bar. On the other hand, ownership can be divided into up to 18 digits after the decimal point, so that customers can have a very small amount of high quality gold for the first time.
PAXG holders can visit the Paxos website to find the serial number and physical characteristics of the gold they own and placed in the vault. Just enter the Ethereum address holding the PAXG token.
According to the PAX Gold white paper, Paxos decided to launch PAXG with the original intention to solve some of the current pain points in the gold market.
Paxos CEOCo-founder Charles Cascarilla said: “In the digital global financial system, physical gold is a cumbersome and outdated investment; compared to other investments, physical gold is difficult to trade, segment, move or utilize. Although it is now easy to trade gold derivatives – Exchange-traded funds, futures and unregistered gold, but these derivatives are all gold ‘representatives’, do not have the legal ownership of physical gold, and have limited accessibility. Gold purchased through uncertified retail stores Not only is the price high, but there is also a risk of not verifying the quality and source of the gold.” To this end, Paxos introduced PAXG to solve the above problems.
Although the unit price of 1PAXG is not low, Paxos stipulates that PAXG’s minimum investment amount is 0.01PAXG (about 15 US dollars), retail investors can also participate, and any individual or organization can purchase PAXG.
PAXG is an Ethereum token built under the ERC-20 protocol, so it is compatible with Ethereum wallets that accept ERC-20 tokens, and can be used for online exchanges, wallets, lending platforms and other encryption products. Although PAXG is currently only available on Ethereum, it will be available in other chains if there is a huge market demand in the future.
Paxos creates and destroys PAXG tokens on demand. Paxos account holders can convert PAXG to USD or London to settle unregistered gold in an unregistered gold account and vice versa. If the customer holds more than 430 ounces of PAXG, they can exchange their tokens for physical gold bars.
Paxos collects and destroys the handling fee based on the fee schedule published on the official website by quota. The minimum purchase price for the Paxos platform is 0.01 PAXG (plus 0.02 PAXG minimum creation fee).
Paxos has hired the US audit firm Withum to independently verify at the specified time whether the full supply of PAX Gold tokens is consistent with the amount of gold held by the UK’s third party hosting on behalf of Paxos (unit: troy ounces). Withum conducts specific month-end forensic audits of these accounts in accordance with standards established by AICPA. The monthly forensic audit report can be found on the Paxos website.