Nexo, a leading crypto banking institution, has purchased $5 million worth of PAX Gold, thus meeting the public’s need for tokenized gold lending and borrowing services.
Nexo, a crypto banking institution, has purchased $5 million worth of PAX Gold, thus meeting the public’s need for tokenized gold lending and borrowing services.
Nexo’s recent purchase of $5 million accelerated the growth of PAXG’s market cap to over $11M, over twice the size of the next biggest digital gold token. Powered by Paxos, the regulated gateway between digital and traditional assets, PAXG is a digital token on the Ethereum blockchain. Each token represents one ounce of premium, institutional-grade gold: Good Delivery gold held in London-based Brink’s vaults.
Since Nexo announced its Instant Crypto Credit Lines would support the digital gold token PAXG, the company has received numerous inquiries from OTC clients about exchanging parts of their existing collateral (BTC, ETH, XRP, XLM, and others) into PAXG, demonstrating the growing value and interest in tokenized gold. With the new and plentiful $5 million investment in PAXG Nexo is now more than equipped to cater to the needs of its OTC customers, thus once again taking Nexo’s business to the next level.
Paxos is also announcing that BitGo now provides support for PAXG across its institutional-grade hot and cold wallet solutions. BitGo pioneered multi-signature security in 2013, and, since then, multi-signature has been recognized as an established open-source protocol that has been thoroughly tested and evaluated by the security community. All digital assets supported by BitGo are integrated using the company’s single API so no additional coding is required for clients to add PAXG.
Antoni Trenchev, managing partner at Nexo, addressed the Nexo community’s interest in PAXG as follows: “The gold bug and crypto enthusiasts mentalities have always been similar. It comes as no surprise that some of our 500k+ users are quite fascinated by the concept of tokenized physical gold, so we are glad to address their needs together with Paxos. And with BitGo’s custodial services now available for PAXG, institutions like Nexo have a military-grade secure solution to store their digitized gold holdings.”
Paxos strategy lead Walter Hessert also commented on the recent development: “We are excited about BitGo’s support and to see that the Nexo community is so interested in PAX Gold. It’s a very strong signal that people see PAX Gold the same way we do: as an asset with staying power and value far beyond any other.”
With Nexo’s new investment in PAXG, the company is showing its confidence in the tokenization of the world, and its determination to reveal the value of digitized gold.