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New York State Department of Financial Services (NYDFS) have approved plans for the company to create a gold backed cryptocurrency.

The new stablecoin from Paxos will be called Pax Gold according to reports. They aim to succeed where many others have failed as they could not achieve the correct regulation.

In a  recent report conducted by  Blockdata it was found that two-thirds of all defunct stablecoin projects were designed to be backed by gold reserves.

This is an interesting move by Paxos as not even many fiat currencies are backed by gold. Having a stable coin pegged to the gold price could be a masterstroke.

It could be another way for crypto traders to switch to the safe haven asset without performing the cumbersome task of moving the money away from the exchange.

Despite being regulated in the US traders in America will have to wait to trade the coin as it will be available in Europe first. There is another coin backed by the precious metal that may hit the US market first and that is called VGold. VGold is made by Vaultoro and will also be regulated in the US. We will have to wait and see if they take some of the lustre away from Pax Gold.