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Cascarilla noted that the development of the PAXG gold-backed token came as a natural fit for Paxos’ vision.
In a panel discussion organized by the London Bullion Market Association (LBMA) on November 5, Paxos CEO, Charles Cascarilla, mulls increased adoption for tokenized assets, an innovation it has pioneered with the Paxos’ gold-backed ERC-20 token, PAXG. According to Cointelegraph, the move to drive increased adoption and integration of tokenized real-world commodities may be boosted with the company’s recent partnership with Paypal Holdings Inc (NASDAQ: PYPL).
As the world transitions into the digital economy, blockchain and crypto-based firms seek to tokenize real-world tradable assets in a bid to get more flexible investment opportunities as traditional markets have their limitations. Cascarilla with Raghav Chawla of Fidelity and Sakhila Mirza of LBMA reiterated the importance of digital gold, how tokenization can change the global gold market, and what is needed to increase adoption of digital assets.
According to Cointelegraph, Cascarilla noted that the development of the PAXG gold-backed token came as a natural fit for Paxos’ vision:
“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.”
Today, Paxos has barely US$74.6 million PAXG tokens, a far cry from the traditional market cap of Gold which is pegged somewhere around US$7.3 trillion. The enormous work to drive increased adoption of this token, as well as other asset-backed tokens is marred by the basic steps required which include, choosing to adopt blockchain, then deciding whether to take the asset on-chain.
Paxos CEO Believes Partnerships Will Help
The interrelation of firms will continue to have its benefits, particularly as it relates to emerging tech like blockchain and its derivatives. The Paxos CEO also weighed in on the benefits of partnerships that his company is pushing for to drive the adoption of asset-backed tokens. He stated:
“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.”
The major deal struck by Paxos will open the firm to the millions of PayPal customers and as there is a growing rate of adoption of the crypto-based services PayPal is championing at this time, the greater the possibilities for the more innovative rollout of crypto products. While Cascarilla himself is conservative about the capabilities of the PayPal partnerships with respect to the tokenization of assets, analysts in the space according to Cointelegraph believe the duo could unleash unique crypto offerings and products in the near future.