Liquid gold being poured into a cast to make a bullion bar at a Gold Reef City demonstration.
For the first time, investors can trade gold-backed futures contracts on a leading crypto derivatives exchange.
In addition to its spot market trading, PAX Gold is now available as perpetual and quarterly futures contracts on FTX.Using PAX Gold, a stablecoin backed by gold, FTX will allow traders to buy and sell gold futures contracts via digital assets.
A futures contract is an agreement to buy or sell a specified asset at a predetermined price at a specific time in the future.
The price of PAX Gold is tied to the spot price of one troy ounce of London Good Delivery gold, a standard measure for the London gold market.
With PAX Gold, a trader or investor owns the underlying physical gold stored in London vaults, which is unlike gold futures, exchange-traded funds or unallocated gold.
By offering more sophisticated trading vehicles for digital assets, FTX hopes to pave the way for eventual options and leverage trading for PAX Gold."Crypto trading is still a young market," said Paul Ciarvardini, Head of Trading at Paxos in an email to CoinDesk.
"PAX Gold futures on FTX shows how the market is maturing and that it is ready for more complex financial instruments."
FTX is operated by Alameda Research, a cryptocurrency liquidity provider that ensures the exchange has access to deep liquidity pools essential for the health and growth of the crypto derivatives market.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Paxos' Tokenized Gold Futures Are Now Trading on FTX Exchange
Publicado en Jan 14, 2020
by Coindesk | Publicado en Coinage
Mencionado en este artículo
User Retention: The Holy Grail for DApps Moving Beyond Buzzword Status
DApp projects in 2019 continued to suffer from their usual issues like poor user retention and the difficulties of navigating user interfaces, among others.
A Stronger Foundation for Bitcoin ETF Applications
One of the recurring themes in the digital asset markets across 2018 and 2019 has been the failure of multiple Bitcoin exchange-traded fund applications to gain the approval of the United States Securities and Exchange Commission.
Cardano's latest Shelley Incentivized Testnet update focuses on stability
The Cardano team has been working hard on maintaining and improving the Shelley Incentivized Testnet.
This technical indicator that forecasts when Bitcoin is about to turn parabolic just flashed
Despite falling into a bout of sideways trading over the past several days and weeks, Bitcoin and the aggregated cryptocurrency markets have been able to post massive gains from their late-2019 lows.