Coinbase Considers Listing Gold-Pegged Stablecoin PAXG

Coinbase is considering adding PAX Gold (PAXG), a gold-backed stablecoin, to its listing roadmap, promoting transparency in the process. PAXG is an Ethereum token linked to physical gold stored in LBMA vaults. In related news, Tether, creator of USDT, also has its own gold-backed stablecoin, Tether Gold (XAUT), supported by substantial gold reserves, illustrating growing interest in gold-backed digital assets.

In a significant move for the cryptocurrency sphere, Coinbase, the largest crypto exchange in the U.S., has announced its plans to potentially list PAX Gold (PAXG), a gold-pegged stablecoin. This information was shared via a post on the social media platform X. While inclusion on Coinbase’s listing roadmap indicates a potential listing, it does not guarantee it. The purpose is primarily to promote transparency and mitigate risks of insider trading.

PAX Gold is an Ethereum-based token linked to physical gold, issued by Paxos. The project claims that PAXG allows for a practical and economical means for investors to own investment-grade gold, harnessing the advantages of blockchain technology. Specifically, every PAXG token corresponds to one fine troy ounce of gold, stored in vaults in London that are part of the London Bullion Market Association (LBMA). This ensures that if you possess PAXG, you actually own the gold held by the Paxos Trust Company, which is regulated by New York’s Department of Financial Services.

Importantly, it’s worth noting that PAXG is not alone in the category of gold-backed stablecoins. Tether, known for its popular cryptocurrency stablecoins like USDT, announced recently that it has $770 million worth of physical gold bullion reserves supporting its own Tether Gold (XAUT). Introduced in 2020, this token is tied directly to the price of an ounce of physical gold. As per Tether’s statement, each XAUT token signifies ownership of gold bars securely stored in Swiss vaults.

Coinbase’s roadmap update is a key development, indicating a growing interest in gold-backed digital assets—something that could attract both seasoned and new investors. The crypto market is constantly evolving, with stablecoins like PAXG and XAUT expanding the options in a world often characterised by volatility.

As always, potential investors are reminded to conduct rigorous research before diving into any high-risk investments like cryptocurrencies. Transfers and trades carry inherent risks, and it’s paramount to be mindful of personal financial responsibility. The Daily Hodl does not endorse specific trading decisions or offer investment advice, so thorough caution is advised for anyone interested in engaging with these digital assets.