post-title Retail Investors Can Now Use Paxos Gold as Collateral Against Loans

Retail Investors Can Now Use Paxos Gold as Collateral Against Loans

Retail Investors Can Now Use Paxos Gold as Collateral Against Loans
Cryptocurrencies News ,

Crypto-lending platform Nexo has today, March 25, opened up the option of using PAX Gold (PAXG) as collateral against its loans to retail investors. A pilot scheme in late 2019 was limited to institutional clients and purportedly saw immediate demand for its gold-backed credit lines.

Nexo’s announcement means that collateralized borrowing against high-grade gold is now no longer the preserve of the ultra-rich.

Launched in September 2019, Paxos’ PAX Gold token is fully-backed by and redeemable for physical gold, stored in secure vaults.

Each token represents one fine troy ounce of London Good Delivery Gold, and enables ownership of gold as a safe-haven asset, with the added convenience afforded by tokenization.

Pilot scheme prompts $5 million investment

Nexo saw such demand for gold-backed credit from institutional clients during its pilot scheme that it invested in $5 million worth of PAXG to meet investors’ needs.

The expansion of this pilot to include retail clients now allows anyone to leverage gold-backed PAXG assets as collateral on the Nexo platform. Antoni Trenchev, co-founder of Nexo, explained the allure:

“Especially in high-volatility times, as in the present, gold is sought after by many of our retail clients and we have worked towards reflecting their wishes.”

As Cointelegraph reported, the crypto loans industry has seen solid growth, as many cryptocurrency holders prefer to leverage their assets as collateral rather than liquidate them.

About Juan Rodulfo

Defined by Nature: Planet Earth Habitant, Human, Son of Eladio Rodulfo & Briceida Moya, Brother of Gabriela, Gustavo & Katiuska, Father of Gabriel & Sofia; Defined by the Society: Venezuelan Citizen (Human Rights Limited by default), Friend of many, Enemy of few, Neighbor, Student/Teacher/Student, Worker/Supervisor/Manager/Leader/Worker, Husband of Katty/ Ex-Husband of K/Husband of Yohana; Defined by the US Immigration System: Legal Alien; Defined by the Gig Economy: Independent Contractor Form 1099; Studies in classroom: Master Degree in Human Resources Management, English, Chinese Mandarin; Studies at the real world: Human Behavior; Studies at home: Webmaster SEO, Graphic Web Apps Design, Internet & Social Media Marketing, Video Production, You Tube Branding, Trading, Import-Exports, Affiliate Marketing, Cooking, Laundry, Home Cleaning; Work experience: Public-Private-Entrepreneur Sectors; Other Definitions: Bitcoin Evangelist, Human Rights Peace and Love Advocate. Author of: Why Maslow: How to use his theory to stay in Power Forever (EN/SP); Asylum Seekers (EN/SP); Manual for Gorillas: 9 Rules to be the “Fer-pect” Dictator (EN/SP); Why you must Play the Lottery (EN/SP); Para Español Oprima #2: Speaking Spanish in Times of Xenophobia (EN/SP). Social Media profiles: Twitter/FB/Instagram/VK/Linkedin/Sina Weibo: @rodulfox
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