Commodity-Backed Stablecoin

Commodity-backed stablecoins are digital currencies that derive their value from underlying commodity assets like gold, silver, or real estate. Holders of these stablecoins have ownership claims to the underlying assets. Gold-backed stablecoins, for example, such as PAX Gold (PAXG), are pegged at a 1:1 ratio to a specific amount of gold, such as one troy ounce (t oz) of a 400-ounce London Good Delivery gold bar.