As stablecoins are getting popular among the crypto world, we keep seeing new stablecoins coming in the market almost every week. In the past few weeks, two new stablecoins have emerged; the first one got launched by Paxo’s gold-backed Ethereum token, PAX Gold (PAXG), and the other one by Binance, BUSD that is backed by the U.S. Dollar.
As technology keeps evolving, different solutions have been presented to counter several problems that were occurring in the crypto sphere. Stablecoins are the solution to the volatility of the market as these digital assets are pegged with fiat currencies or any other asset.
About a week ago, Binance in collaboration with Paxos announced that they are going to launch a stablecoin backed by U.S. Dollar, BUSD. Paxos has already created such other stablecoins including, TrueUSD (TUSD), Gemini Dollar (GUSD), USDCoin (USDC), and also the Paxos Standard (PAX). All these Paxos developed stablecoins have received clearance from the regulatory authorities of NYDFS.
Paxos will be the custodian and issuer of BUSD tokens. An auditing process will take place each month and users will need to complete KYC while buying the token from Binance or Paxos. Binance with time has grown into a global network and it is one of the trusted crypto networks in the market. This collaboration is a new step towards bringing stability to the crypto world.
Paxos is an international crypto-asset firm that announced the release of its PAX Gold token, not too long ago. The firm affirms that its latest stablecoin project will be the first among crypto assets to redeem their token against the physical gold. Moreover, the U.S. regulatory, NYDFYS (New York Department of Financial Services) has received a regulatory nod of approval for the stablecoin PAXG.
If PAXG receives approval from the regulatory authority, it will be their first gold-backed crypto that will be available for trading to New York residents.
The Paxos gold tokens, each will be backed by one fine troy ounce of gold from London Good Delivery. The gold will be stocked across hidden cells all over London and if the users would have any concern regarding their assets, they would have the option to have complete control over their assets (gold) that will be linked with their holdings. Moreover, the users will also be allowed to move their tokens like any other ERC-20 based crypto.
These features give an edge to PAXG and make it a lot easier for users to have access to their assets (gold) without any sort of hurdle. As PAXG is being run by the Ethereum blockchain, it can be traded all over the world in nanoseconds.
The U.S. government has raised concerns over several cryptocurrencies and they are almost about to ban Veneuzulean crypto, Petro. If in such an atmosphere PAXG and BUSD receive a green signal from the U.S. regulatory authorities then it will be a good sign for the crypto market and crypto users of the United States.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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