Coinbase, the leading cryptocurrency exchange in the US, has made an announcement regarding the potential listing of a gold-pegged stablecoin.
In a recent update on the social media platform X, Coinbase revealed that PAX Gold (PAXG) has been added to its listing roadmap.
It’s important to note that being included in Coinbase’s roadmap does not guarantee a listing, but it signifies the possibility of it being listed to uphold transparency and prevent insider trading.
PAX Gold is a token based on the Ethereum (ETH) blockchain, backed by physical gold, and issued by Paxos, a blockchain infrastructure platform.
The project states,
“PAXG provides investors with a cost-effective way to own investment-grade physical gold while leveraging the benefits of blockchain technology. Each Pax Gold (PAXG) token is backed by one fine troy ounce of gold, securely stored in LBMA (London Bullion Market Association) vaults in London. By holding PAXG, you have ownership of the underlying physical gold, which is held in custody by Paxos Trust Company…
The gold backing PAXG is regularly audited. Paxos is a trust company and custodian regulated by the New York State Department of Financial Services.”
PAXG is not the only gold-backed stablecoin available in the market.
Tether, the entity behind various popular cryptocurrency stablecoins like USDT, recently disclosed that it has $770 million worth of physical gold bullion reserves supporting its Tether Gold (XAUT) stablecoin.
Introduced in 2020, XAUT is a digital asset pegged to the price of one ounce of physical gold.
As per a statement from Tether, each token represents direct ownership of gold bars held in secure Swiss vaults.
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