Page 16 - Bullion World Volume 4 Issue 7 January 2024

Bullion World | Volume 4 | Issue 7 | July 2024

Mr Gregor Gregersen: There are four main areas
where I see technological progress in the gold sector.
Firstly, companies like Xendras are advancing in tracking
gold bars from their origin through various locations over
their lifetime. Another type of tracking is Proof of Reserve
(POR), used by vaults to prove the presence of claimed
bars. We specialize in these tracking technologies.
Secondly, there's the technology of collateralizing gold,
enabling secure borrowing against stored gold. Lastly,
there's tokenization, a hot topic in gold technology today,
albeit with varying interpretations. Rich from Paxos,
known for the most traded gold token, offers valuable
insights. We also had our own gold token, 'Cash,' through
a separate venture, learning valuable lessons over five
years of development.

Mr Gregor Gregersen

Mr Rich Teo: Paxos operates as a blockchain and
crypto infrastructure provider, serving various asset
classes globally. Our flagship, 'Cash,' is prominent
among these, along with web securities and trading
services for major fintech firms worldwide. Pax
Gold, initiated around 2017-18, focuses on the
tokenization of gold, a seemingly straightforward
concept of representing gold on the block chain.
However, challenges included navigating complex legal
implications and ensuring the continuous redeemability
of tokenized gold. Another hurdle was aggregating
fractionalized gold globally into redeemable bullion,
regulated by NYDFS despite being redeemable in
London. Unlike other assets, gold lacks interest, making
it less popular and profitable to hold. Despite these
complexities, we have continued to innovate and refine
our gold token since its launch several years ago.

Mr Rich Teo

Mr Martin Huxley: Can you detail the Pax Dollar’s drawbacks in marketing gold?
circulation of 25 billion dollars? Mr Rich Teo: Dollar tokens dominate crypto markets as
Mr Rich Teo: Among our dollar products, several were the base currency. However, there's hope gold could
made for our use and large institutions like PayPal. The become a more appealing base currency for those
most successful was BUSD for Binance, peaking at seeking a hedge against inflation. Gold-based currencies
around 24 billion. face liquidity challenges compared to dollar assets.
Gold doesn’t trade 24/7, unlike crypto, causing market
Mr Martin Huxley: Pax Gold reached about 400 dislocation. Institutional adoption of tokenized gold for
million dollars. What are your views on investor instant settlement is limited due to reluctance to hold
sentiment towards these tokens, and why is assets on blockchain platforms. These challenges hinder
one more successful? Is it greater interest or market alignment.

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