{"id":107698,"date":"2020-11-08T20:34:01","date_gmt":"2020-11-08T17:34:01","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/as-paypal-integration-looms-paxos-ceo-sees-mass-adoption-for-tokenized-assets\/"},"modified":"2020-11-08T20:34:01","modified_gmt":"2020-11-08T17:34:01","slug":"as-paypal-integration-looms-paxos-ceo-sees-mass-adoption-for-tokenized-assets","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/as-paypal-integration-looms-paxos-ceo-sees-mass-adoption-for-tokenized-assets\/","title":{"rendered":"# As PayPal integration looms, Paxos CEO sees mass adoption for tokenized assets"},"content":{"rendered":"

“# As PayPal integration looms, Paxos CEO sees mass adoption for tokenized assets <\/strong>”
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In a panel last week for the London Bullion Market Association, Paxos founder and CEO Charles Cascarilla discussed the growth of Paxos\u2019 gold-backed ERC-20 token, PAXG, and the future of asset tokenization more general<\/a>ly \u2014 a future that could well involve his company\u2019s recently-announced integration with financial giant PayPal.\u00a0<\/p>\n

Speaking alongside Fidelity Labs director of product management Raghav Chawla and the LBMA\u2019s Sakhila Mirza, Cascarilla told<\/a> viewers that an asset-backed gold token was a natural fit for Paxos\u2019 vision:<\/p>\n

\u201cIt was really a very logical thing for us to launch a gold token given what we\u2019re trying to do at Paxos, which is to be infrastructure for the blockchain-based financial system, the more open financial system that we think is going to evolve from the one we\u2019re in now.\u201d\u00a0<\/p><\/blockquote>\n

He mentioned a variety of drawbacks that limit the utility of both physical gold and gold-backed assets exchanged on traditional markets, including limited market hours and high frictional costs inherent in exchanging physical bullion.\u00a0<\/p>\n

Because of their superior liquidity, transferability, and availability in 24-hour markets, Cascarilla sees tokenized gold and other assets as the future. <\/p>\n

\u201cThe reality is, I think, this trend is really an inevitable trend about where assets will sit,\u201d he said of commodities on-chain.<\/p>\n

One major barrier stands in the way, however: building \u201cintertia\u201d towards adoption.<\/p>\n

To date, Paxos has tokenized $75 million in gold, or 37,000 ounces \u2014 just a fraction of the estimated $7.3 trillion global gold market. Cascarilla notes that widespread adoption is slowed by the prerequisite steps: has to first choose to adopt blockchain, then likewise choose gold as an asset to take on-chain. <\/p>\n

He believes, however, that a 5-to-10 multiplier in AUM, bringing the total tokenized gold market above $1 billion, is where the market for tokenized assets would really begin to \u201ccook with fire.\u201d<\/p>\n

Moreover, Cascarilla thinks it could happ<\/a>en soon: <\/p>\n

\u201cSome of the partnerships we have in the pipeline will be able to bring digital gold to hundreds of millions, if not billions, of people, within the next 18 months… I think that the adoption curve for both blockchain-based assets, but specifically gold, are very, very bright, and that is where the future is going to be.\u201d<\/p><\/blockquote>\n

While Cascarilla did not mention PayPal as one of the partners, commentators have speculated that the Paxos\/Paypal integration could be the gateway towards mass adoption for cryptocurrencies \u2014 and if a behemoth like PayPal were to offer access to tokenized assets, they could be next in line.\u00a0<\/p>\n

And, in spite of what gold bugs like Peter Schiff have been championing, Cascarilla believes gold, in particular, will have<\/em> to be digitized in order to compete with Bitcoin. <\/p>\n

\u201cHaving a physical bearer asset only has so much utility in today\u2019s world.\u201d\u00a0<\/p>\n