Why A Gold-Backed Token Is Seemingly Perfect For The Goal Of Paxos
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Charles Cascarilla, the CEO and founder of Paxos spoke last week in a panel for the London bullion market Association we discussed the growth of the gold-backed ERC-20 token from the company, PAXG as well as the future of asset tokenisation in general. He believes that the future could bode well as they recently announced the implementation of the PayPal payments giant.
Speaking to the viewers, the CEO said that an asset-backed gold token would be a perfect fit for the goal and mission of Paxos. He was speaking alongside the director of product management at the fidelity labs, Raghav Chawla and LBMA’s Sakhila Mirza.
“It was really a very logical thing for us to launch a gold token given what we’re trying to do at Paxos, which is to be infrastructure for the blockchain-based financial system, the more open financial system that we think is going to evolve from the one we’re in now.”
He went on to note several obstacles in the way that limited the utility of the physical gold and gold-backed assets exchanged on traditional markets.
Interestingly, the CEO highlights that because of their superior liquidity and transferability on the 24-hour markets, tokenised gold and other assets are the future in Cascarilla’s eyes.
He does highlight one obstacle that stands in the way though and that is making sure intertia is being built towards adoption.
Currently, $75 million worth has been tokenised in gold by Paxos. The CEO highlights that this widespread adoption is not going as fast as would have been hoped.
Discussing the future and where the company will go in 2021/2022, the founder notes numerous collaborations that are currently being looked into as he highlighted:
“Some of the partnerships we have in the pipeline will be able to bring digital gold to hundreds of millions, if not billions, of people, within the next 18 months... I think that the adoption curve for both blockchain-based assets, but specifically gold, are very, very bright, and that is where the future is going to be.”