NEW YORK (Reuters) – Paxos Trust Company will launch the first regulated, gold-backed digital token and later this month will debut a stablecoin pegged to the U.S. dollar, after getting approval from New York regulators on Thursday.

FILE PHOTO: Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall

The stablecoin called BUSD was jointly developed by global cryptocurrency exchange Binance and Paxos and will be available on Paxos’ platform.

PAX Gold, on the other hand, is an asset-backed digital token, each representing one fine troy ounce of London Good Delivery gold stored in professional vault facilities in London. PAX Gold customers will own the underlying physical gold. Its launch date was not immediately available.

“DFS is committed to encouraging innovation while providing regulatory oversight to keep New Yorkers and the rapidly evolving financial services market safe and sound,” said Superintendent of Financial Services Linda Lacewell in a statement….

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