A gold-backed digital asset created by Paxos will soon launch for trading on cryptocurrency exchange Binance.
From Aug. 26, Binance customers will be able to trade PAX Gold (PAXG) against the exchange’s own stablecoin BUSD and exchange token Binance coin (BNB), as well as bitcoin (BTC).
PAX Gold “will offer [its] users an easy and safe opportunity to gain exposure to real, regulated gold,” said Rich Teo, Paxos co-founder and CEO Asia.
A New York-based crypto exchange and stablecoin issuer, Paxos launched the gold-backed stablecoin last September.
Each Ethereum-based token has the legal title to an ounce of physical gold stored in the Brink’s London vault, though traders can own as little as $1 worth.
Binance’s decision to add support for PAXG comes nearly three weeks after gold’s price reached a record high of $2,075 per ounce.
The historical inflation hedge has rallied by 27% this year and analysts at Goldman Sachs expect prices to rise further to $2,300 in the next 12 months.
“Gold is an asset that has had enduring value from generation to generation. With PAX Gold now on Binance, investors can easily get and trade gold with the click of a button,” said Changpeng “CZ” Zhao, CEO of Binance.
Pax Gold has been approved by the New York Department of Financial Services.
Also announced Tuesday, CF Benchmarks has launched a benchmark price index for Pax Gold against the U.S. dollar.
The index will provide a daily settlement and spot rate, refreshed every second, according to an announcement.
With the traditional gold markets only operating on weekdays, PAXG “opens new opportunities for financial markets,” said Sui Chung, CF Benchmarks CEO.