Recent news showed stablecoin project Paxos looks to release multiple blockchain-based assets, tokenizing assets such as stocks and precious metals.
Paxos branches out
The new assets from Paxos, “backed by precious metals and publicly traded stocks” are slated for a release this year at some point, Fortune noted in a March 11 article. In an interview on Fortune’s “Balancing the Ledger” show, Chad Cascarilla, Paxos’ CEO, detailed the firm desires to put “any type of asset” on the blockchain. Cascarilla included the movement is fueled by the potential to decrease settlement and transaction times, as well as fees.
Commenting on the topic of proper asset-to-token backing, Cascarilla explained,
How you do it with a gold token is how much gold you have in a vault equals how many gold tokens outstanding […] How do you do it with stocks? How many stocks do I have sitting in an account, equals how many stocks in the blockchain.”
As of now, Cascarilla said, the stablecoin project has seen success in its experimental tokenized stock and bond blockchain transactions. “We’re getting pretty close, and I think we’ll see it in 2019,” he added.
Although, according to Fortune, Paxos still waits for the go-ahead from the U.S. Securities and Exchange Commission (SEC), providing further authorization for the project to be able to release its new security-based products.
Cascarilla also touched on the project’s current blockchain-based commodities endeavors, with a gold-based asset likely being the most evident choice, which will see an introduction at some point in 2019.
Other tokenized assets in play
Paxos joins a list of several other entities taking a stab at real-world tokenized assets. In February, the Financial Tribune covered Iran’s gold-backed crypto asset announcement. A guide from CoinTelligence last year actually described 38 other gold-backed crypto assets in existence.
Similarly, February saw The Block report on Abra’s release of fractional stock trading exposure, via crypto assets. Although, Abra’s model is based on a synthetic exposure model, which essentially allows customers to gain price exposure to stocks without actual stock custody.