The integration of gold betting on a crypto-gaming platform marks a unique milestone in the evolution of tokenisation, whereby a physical asset is made divisible, tradable and easier to exchange through smart contracts and blockchain technology.
Each unit of PAXG is a digital asset backed by one fine troy ounce of a gold bar held in custody by the Paxos Trust Company.
“Tokenisation allows individuals to express their spending habits through the assets they choose to hold, rather than having to use currencies to which they hold no philosophical or economic attachments,” a Cloudbet spokesperson said.
“In this case, we’re empowering players that want to own gold with the means to place bets with a gold casino or a gold sportsbook.”
New players who deposit PAXG with the operator are eligible for a welcome bonus worth up to 5 units of the gold coin (almost $10,000 at current prices), as well as 100 free spins over two weeks on a gold-themed slot in the Cloudbet casino.
PAXG is Cloudbet’s third major stablecoin betting integration after launching USD Tether and USD Coin, the biggest coins in the stablecoin universe, earlier this year.
For crypto gaming, stablecoins have been put forward as a solution for players seeking to protect the value of their cryptocurrency winnings from the extreme price fluctuations experienced by holders of non-stablecoins.
PAXG’s value is tied to the price of gold, while USDT and USDC are fixed on a 1-to-1 basis with the US dollar, meaning the fiat values of winnings in these currencies don’t swing with cryptocurrency market prices. For this reason, stablecoins have been championed as the key to convincing traditional fiat currency audiences to experience the benefits of betting with crypto: Fast transactions, low fees and industry-leading bonuses.
The new coin amplifies what’s on offer at Cloudbet for players seeking the best odds and highest limits for crypto betting from the comfort of their homes or on the go. Founded in 2013, Cloudbet is one of the world’s longest established bitcoin betting operators, with a history of innovation in the crypto-gaming space.
The operator relaunched its site in April to attract a more diverse audience and has introduced a swathe of bold new features including esports, politics betting, easy credit-card coin purchases and the three stablecoins. The site also accepts ethereum and bitcoin cash.
The operator grabbed the attention of industry observers in June with an ambitious English Premier League campaign, under which its sportsbook charged no margin on pre-match bets for all games left in the season. That allowed customers to access the fairest prices — and therefore the highest returns — in the market.
The campaign was an extension of Cloudbet’s long-standing “best odds” campaigns on sports including soccer, basketball and tennis.