December 12, 2019 05:09 AM Eastern Standard Time
LONDON–(BUSINESS WIRE)–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’s purchase of $5M in PAX Gold increased PAXG’s market cap to over $11M, over twice the size of the next biggest digital gold token
- By investing in PAXG, Nexo is addressing the global need for crypto banking services that support digitized gold
- PAXG is now supported by BitGo, the leader in digital asset financial 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.
Nexo is a leading regulated financial institution for digital assets. The company’s mission from day 1 is to maximize the value of digital assets by offering tax-efficient ‘Instant Crypto Credit Lines,’ high-yield ‘Earn Interest’ products and ‘Send & Pay’ features for our clients, along with the Nexo Wallet’s $100 million custodial insurance and military-grade security provided by BitGo. Since raising $52.5 million in 2018, Nexo has processed $1+ billion in 40+ fiat currencies for 500,000+ users across 200 jurisdictions.
Official website: https://nexo.io
Paxos is a regulated financial institution on a mission to create a global, frictionless economy. By building infrastructure to enable the movement between physical and digital assets, Paxos is creating a future where all assets—from money to commodities to securities—are digitized and can move instantaneously 24/7.
Today, as the first regulated Trust company for digital assets, Paxos technology makes it possible to tokenize, custody, trade and settle assets. With offices in New York, London and Singapore, Paxos takes a global view of modernizing the financial system.
Official website: https://www.paxos.com
BitGo is the leader in institutional digital asset financial services, providing clients with security, custody, and liquidity solutions. BitGo is the world’s largest processor of on-chain bitcoin transactions, processing over 20% of all global Bitcoin transactions, and $15 billion per month across all cryptocurrencies. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and spans more than 50 countries. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. BitGo is backed by Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Goldman Sachs, Redpoint Ventures, and Valor Equity Partners.