SIBEX is partnering with Paxos to facilitate peer to peer Over The Counter (OTC) trading. SIBEX is the developer of a peer to peer protocol which creates new arbitrage opportunities for institutional traders while eliminating the issues that exist with current OTC markets. Paxos is a regulated financial institution that digitizes and mobilizes assets; it offers PAX Gold (PAXG), a regulated digital asset backed by physical gold.
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/Paxos Partnership
This partnership will allow SIBEX to distribute PAX Gold. This is an asset-backed digital token, with each token representing one troy ounce of London Good Delivery gold stored in a London vault.
Because SIBEX believes gold is a difficult asset to invest in (and hold), it proposes to make it easy for investors – by offering PAX Gold. With PAX Gold, investors (or speculators) can hedge against the volatility of other digital assets, via a regulated investment tool with exposure to gold assets.
Paxos is the issuer for PAXG. Each PAXG, backed by one troy ounce of a 400 ounce London Good Delivery gold bar, will be available to authorised SIBEX users. PAXG is backed by LBMA certified gold bars securely stored in Brink’s vaults. Paxos Trust Company holds the physical gold in trust for the benefit of token holders.
Regulated as a trust company in New York, Paxos is a financial institution promoting a global, frictionless economy. By building infrastructure to enable the movement between physical and digital assets, Paxos wishes to create a future where all assets — including money, commodities and securities:
- become digital
- can move instantaneously, 24/7.
Paxos products include:
- Post-Trade Confirmation Service
- Paxos Standard (PAX), a regulated stablecoin
- Paxos Settlement Service, a private, permissioned blockchain designed to settle securities between two parties bilaterally.
The blockchain connection
The SIBEX peer-to-peer protocol, and the SIBEX client, leverage blockchain technology to remove middlemen. This enables professional traders to trade popular digital assets, including:
- ERC20 tokens.
As a decentralised exchange, traders using SIBEX’s software:
- maintain custody of their assets during trades
- have access to cross-chain transactions
- can 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. Front running occurs when those with advance knowledge of a large buy or sell order manipulate the price of an asset in order to maximise their profits.
Unlike centralised exchanges, traders using the SIBEX software maintain custody of their assets during trades. This then establishes a more stable price for those assets.
SIBEX ships with two interfaces:
- a dark pool Graphical User Interface (GUI)
- a Command Line Interface (CLI).
These interfaces are pre-configured to simplify the trading of Bitcoin, USDT and Ethereum. Users can trade programmatically using the REST or websockets Application Programming Interface (API). SIBEX says it will add capabilities and interfaces, for example a classic OTC order form for settling trades, in the future.
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.”
Enterprise Times: what does this mean
By removing intermediaries from digital asset financial markets, SIBEX believes it is opening up new trading strategies and market opportunities for professionals around the world. Paxos adds PAXG and the physical gold dimension.
For the knowledgeable this may seem to be a boon. Certainly, its use is not for the financially faint-hearted (in investment terms). What is less clear is how the Paxos/SIBEX technologies work together. Enterprise Times would like to see more – on both web sites.