CF Benchmarks launches PAX Gold-USD benchmark price index
CF Benchmarks is to offer a PAX Gold (PAXG) daily settlement and spot rate, updated every second. PAX Gold from Paxos Trust Company is the first regulated digital asset backed token that represents premium gold bars.
The benchmark price indices are regulated benchmarks under EU BMR so can be used by regulated firms in the EU for the creation of financial and investment products. They will be published 365 days a year to give investors a trusted 24/7 digital gold price for the first time. Digital asset exchanges Kraken and itBit by Paxos will provide transaction and order book data for these indices. The new benchmark indices will become the latest members of the CF Cryptocurrency Index Family- Single Asset Series, full index methodology and governance documents can be found here.
"Traditional gold markets only operate Monday through Friday, so this new offering opens new opportunities for financial markets,” says Sui Chung, CEO of CF Benchmarks. “This is the first step of realising the promise of the tokenisation of assets onto blockchains. Investors and traders will no longer have the traditional two day hiatus after every Friday afternoon before being able to value their gold holdings.”
Paxos introduced the PAXG token as well as the associated secure blockchain and physical infrastructure to store gold bars on behalf of token holders. CF Benchmarks will now provide a benchmark price for PAXG.
“PAX Gold has the flexibility and accessibility of crypto assets, while representing physical, secure, vaulted gold–without storage fees," says Paxos Head of Strategy Walter Hessert. "By offering a PAXG-USD price index, CF Benchmarks is making it easier for investors to get accurate pricing data 24/7, which has never existed before in the gold market."