Partnership to Facilitate Peer to Peer OTC Trading Using PAX Gold (PAXG), the Regulated Digital Asset backed by Physical Gold from Paxos
Zug, Switzerland — 6 December, 2019 — SIBEX, the developer of the peer to peer protocol which creates new arbitrage opportunities for institutional traders while eliminating the issues that exist with current OTC markets, has partnered with Paxos, a regulated financial institution that digitizes and mobilizes assets. This partnership will allow SIBEX to distribute PAX Gold, an asset-backed digital token, each representing one fine troy ounce of London Good Delivery gold stored in a London vault.
Recognizing that gold is a difficult asset to invest in and hold, SIBEX is making it easy for investors by offering PAX Gold. Clients can now hedge themselves against the volatility of other digital assets, while offering a regulated investment tool and exposure into gold assets.
Paxos is the issuer for PAXG. Each PAXG is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar and will be available to authorized SIBEX users. PAXG is backed by LBMA certified gold bars securely stored in Brink’s vaults, held in custody by Paxos Trust Company for the benefit of the token holder.
Daniel Haudenschild, CEO of SIBEX, commented, “As a regulated and established player in the finance space, PAXOS has been instrumental in the democratization of the industry, and we are aligned in our mission to limit barriers to entry within the digital assets space. We are always looking for ways to expand and diversify our service offerings, so it was a natural progression for SIBEX to expand towards gold as an investment.”
The SIBEX peer-to-peer protocol and the SIBEX client leverage blockchain technology to remove middlemen, enabling professional traders to trade the most popular digital assets, including Bitcoin, Ethereum, USDT, and ERC20 tokens. As a decentralized exchange, traders using SIBEX’s software maintain custody of their assets during trades, while enabling cross-chain transactions and allowing users to trade assets in a peer to peer manner.
By providing an institutional-grade dark pool for digital asset procurement and liquidation, the SIBEX protocol solves issues such as front-running, whereby those with advance knowledge of a large buy or sell order can manipulate the price of the asset in order to maximize their profits. By enabling traders to maintain custody of their assets, SIBEX prevents such manipulation in order to guarantee a more stable price for assets.
Walter Hessert, Corporate Strategy Lead of Paxos, concluded, “PAX Gold offers real ownership of the highest quality physical gold in the world. We’re excited that PAX Gold is now available on SIBEX, making it easier for even more people to own the world’s leading gold token.”
For more information about the SIBEX protocol and client, visit: https://sibex.io/