Paxos founder and CEO Charles Cascarilla last week discussed at the London Bullion Market Association the growth of gold-backed Paxos token ERC-20, PAXG, and the future of asset coding in general – a future that may also include the recently announced integration with the financial giant. PayPal.
Speaking with Fidelity Labs Product Management Director Raghav Chawla and Sahila Mirza of LBMA, Cascarilla told viewers that the asset-backed gold brand fits naturally into Paxos’ vision:
“It was very logical for us to launch a gold mark considering what we’re trying to do at Paxos, which is building the infrastructure of a blockchain-based financial system, which is a more open financial system that we think will evolve from where we are now.”
He cited a number of shortcomings that limit the utility of both physical gold and gold-backed assets traded in traditional markets, including the limited market hours and the high friction costs associated with exchanging physical bullion.
With superior liquidity, transferability and 24-hour market availability, Cascarilla sees the future in cryptocurrency and other assets.
“In fact, I think this trend is inevitable when it comes to assets,” he said of the merchandise online.
However, there is one major obstacle standing in the way: the creation of “enteria” on the road to adoption.
To date, Paxos stands for $ 75 million of gold, or 37,000 grams, which is a fraction of the global gold market of $ 7.3 trillion. Cascarilla notes that widespread adoption is slowing down due to initial steps: You first need to choose the blockchain, then choose gold as the asset to place it in the chain.
However, he believes that the 5 to 10 multiplier in AUM, which brings the total coded gold market to more than $ 1 billion, is where the market for truly encrypted assets will begin to “get ready for fire”.
Moreover, Cascarilla believes this may happen in the near future:
“Some of the partnerships that we have in development will be able to bring digital gold into hundreds of millions, if not billions of people, over the next eighteen months … I think the adoption curve for both blockchain-based assets, and especially gold, is very bright, and that’s Is where the future will be. ”
While Cascarilla did not mention PayPal as one of its partners, commentators have suggested that the Paxos / Paypal integration could be a gateway to massive adoption of cryptocurrencies – and if a giant like PayPal provides access to token assets, they could be next. Line.
Although they are supported by gold bugs like Peter Schiff, Cascarilla believes gold in particular should be digitized to compete with Bitcoin.
“Having a stake is not that important in today’s world.”