SALT, a crypto-collateralized online lending platform, announced on last week that beginning October 1st it will offer the just released PAX Gold (PAXG) as a collateral type for clients seeking to use their digital assets as collateral to secure a USD loan. The online lender reported that PAX Gold is an asset-backed digital token on the Ethereum blockchain and is Paxos’ first blockchain asset to represent precious metal; its value is tied directly to the spot price of gold quoted by the London gold market.
“By tokenizing gold, Paxos brings the benefits of physical gold ownership to the cryptocurrency community. PAX Gold is built as an ERC-20 token on the Ethereum blockchain network. As a digital representation of physical gold, PAX Gold has the potential to increase the overall liquidity of gold by connecting traditional markets with cryptocurrency markets.”
Speaking about the latest addition, Jenny Shaver, Chief Operating Officer at SALT, stated:
“Precious metals are ideal for tokenization. Gold, as an example, has well-established institutional physical custody and a broad base of investors familiar with the asset class. Gold has traditionally been held as a hedge against inversely correlated assets like stocks and fiat currency, so it provides digital token holders with familiar asset diversification options. By offering PAX Gold as our newest collateral type, we’re adding value for our customers by combining the benefits of gold investing with easy access to funds via crypto-backed lending.”
Scott Simpson, VP of Strategic Partnerships at Paxos, added:
“PAX Gold is the first regulated digital asset that allows holders to own the underlying physical gold. Unlike fiat currencies, gold has intrinsic value and Paxos allows users to physically redeem their PAX Gold tokens for actual gold. With PAX Gold, people can more easily access this market and with SALT, customers can easily leverage gold like never before.”