Coinbase, the leading cryptocurrency exchange in the United States, has made an exciting announcement regarding a potential addition to its platform. The company has revealed that it is considering listing a gold-pegged stablecoin, PAX Gold (PAXG), as part of its listing roadmap.
While being included in Coinbase’s roadmap does not guarantee a future listing, it does indicate the possibility of PAX Gold being added to the exchange. This move aims to promote transparency and prevent any potential insider trading activities.
PAX Gold is an Ethereum-based token that is backed by physical gold and is issued by Paxos, a blockchain infrastructure platform. According to Paxos, PAXG provides investors with a cost-effective way to own investment-grade physical gold while leveraging the benefits of blockchain technology. Each PAX Gold token is backed by one fine troy ounce of gold stored in LBMA vaults in London and is audited monthly to ensure transparency and security.
It is worth noting that PAX Gold is not the only gold-backed stablecoin available in the market. Tether, the company behind popular cryptocurrency stablecoins like USDT, recently announced that its Tether Gold (XAUT) stablecoin is backed by $770 million in physical gold bullion reserves. Launched in 2020, XAUT is pegged to the price of one ounce of physical gold, with each token representing direct ownership of gold bars held in secured Swiss vaults.
This move by Coinbase to potentially list PAX Gold and the existing presence of other gold-backed stablecoins in the market highlight the growing interest in combining traditional assets like gold with the innovation of blockchain technology. As the cryptocurrency industry continues to evolve, it will be interesting to see how these developments shape the future of digital assets and investment opportunities.
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Image Credit: Midjourney