PAXG Collateral On Binance Set To 50%

Binance has lowered the collateral value of PAX Gold (PAXG) to 50%, meaning only half of its value now counts toward your borrowing power for margin trading and derivatives.

1. With a 50% collateral rate, $100 worth of PAXG now provides $50 of usable margin in Binance’s supported products.
2. This reduces the leverage you can get when using PAXG as collateral and may increase the risk of liquidation if you don’t adjust your positions or add other assets.
3. Important things to watch are which markets are affected, how your margin ratio changes, and whether PAXG liquidity or borrowing costs shift as traders adjust their collateral.

Deep Dive

1. What a 50% Collateral Rate Means

PAX Gold (PAXG) is a regulated digital token backed by physical gold. Each PAXG token represents one fine troy ounce of London Good Delivery gold stored securely in vaults. This lets you have gold exposure with the convenience of cryptocurrency.

On exchanges like Binance, a “collateral rate” (sometimes called a “haircut”) is the percentage of an asset’s value that counts when used as collateral for borrowing or margin trading. A 50% rate means if you have $1,000 worth of PAXG, only $500 counts as collateral.

This change mainly affects margin and futures trading where multiple assets can be used as collateral. It does not affect simply holding PAXG in your spot wallet.

In short: PAXG can still be used as collateral, but it now counts for less margin compared to assets with a 100% collateral rate, like some stablecoins.

2. Impact on PAXG Users and Risk

If you rely heavily on PAXG as collateral, your effective borrowing power is now lower, even if the price of PAXG hasn’t changed.

Lower collateral value means:

• You can open smaller leveraged positions than before.
• Your current margin ratio tightens, which means some positions are closer to liquidation.
• Margin calls become more likely during price swings in PAXG or the assets you’re trading.

This encourages users to either reduce their position sizes, add collateral with higher collateral rates, or accept a smaller safety margin before liquidation.

3. What to Watch Next

• Check which Binance products are affected (like cross margin, isolated margin, USD-margined futures, or portfolio margin) and when the change takes effect by reviewing Binance’s official announcements on their app or website.
• Monitor your real-time margin ratio closely, not just your account balance. The margin ratio reflects the new 50% collateral rate and determines liquidation risk.
• Watch PAXG’s market liquidity and borrowing costs. If many traders switch from PAXG to other collateral like stablecoins or Bitcoin, trading spreads and funding rates for PAXG pairs may change.

Conclusion

Binance’s decision to treat PAX Gold collateral at 50% doesn’t change what PAXG is—a gold-backed asset—but it does reduce how much margin it provides. If you use PAXG in leveraged trading, expect tighter risk limits. Focus on your margin ratios, understand the specific rules for each product, and consider how your overall collateral mix performs with this new collateral haircut.

What is expected in the development of PAXG?

I wasn’t able to find helpful information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. Meanwhile, please feel free to choose a different question or cryptocurrency for analysis.

What updates are there in the PAXG code base?

No recent updates to the PAX Gold (PAXG) codebase were found in the available data.

1. No Recent Code Changes Detected – There is no evidence of recent updates to the smart contract or activity on GitHub.

Deep Dive

1. No Recent Code Changes Detected

Overview: After reviewing available sources, including the project’s GitHub repository and recent news, no recent updates to the PAXG smart contract were identified. The information mainly covers the token’s existing features and market behavior.

The GitHub README explains the contract’s design, such as its use of the ERC-20 token standard, an upgradeable proxy system, and specific roles for managing supply and pausing functions. However, there are no recent commit dates or version updates listed. News and social media posts focus on price movements, regulatory news, and exchange listings, rather than technical development.

What this means: This is generally a neutral sign for PAXG. The lack of recent public code changes suggests the core smart contract is stable and functioning as intended. Since PAX Gold is backed by physical gold and operates under regulatory oversight, having a stable, audited contract reduces risks related to frequent updates. On the other hand, it also means there are no new features or improvements being added at the protocol level right now.

Conclusion

PAX Gold’s development seems to prioritize regulatory compliance and expanding market presence over frequent technical updates. Its strategy as a stable, regulated asset backed by real-world gold may appeal to users looking for security and reliability, compared to tokens that undergo constant changes typical in decentralized finance (DeFi) projects.

What could affect the price of PAXG?

PAX Gold (PAXG) combines the stability of gold with the growth potential of cryptocurrency.

1. Gold’s Big Picture – The price of physical gold, influenced by central bank policies and inflation, mainly drives PAXG’s long-term value.
2. Crypto Growth & Rules – More platforms using tokenized assets and clearer regulations for companies like Paxos could increase PAXG’s usefulness and attract more investors.
3. Market Mood & Trading Activity – Short-term price changes in PAXG can happen due to crypto market trading volumes and investor sentiment, sometimes moving away from gold’s actual price.

In-Depth Look

1. Gold’s Big Picture (Positive for PAXG)

PAXG represents actual physical gold, so its value closely follows the spot price of gold. Recently, gold prices have climbed to nearly $5,000 per ounce, driven by factors like expected interest rate cuts by central banks, ongoing inflation, and global uncertainties. Big financial institutions like Goldman Sachs predict gold could reach $5,400 by the end of the year, indicating potential for further gains.

What this means: This trend is good news for PAXG holders because a strong gold market supports a higher baseline price. However, if the U.S. dollar strengthens unexpectedly or central banks take a tougher stance on rates, gold prices—and therefore PAXG—could drop.

2. Crypto Growth & Rules (Mixed Effects)

PAXG’s success also depends on the growing popularity of tokenized real-world assets (RWAs). Its market value recently passed $2 billion, with demand jumping 450% (Bpay News). Being available on major crypto exchanges and decentralized finance (DeFi) platforms makes it easier to buy, sell, and use PAXG. However, its future depends on Paxos maintaining good standing with regulators like the New York Department of Financial Services (NYDFS). Any regulatory problems could hurt confidence in PAXG’s backing.

What this means: More adoption on platforms like Bitget and Hyperliquid can increase demand, possibly allowing PAXG to trade at a premium compared to physical gold during strong crypto markets. On the flip side, regulatory issues could limit access or raise doubts about whether each token is truly backed by gold.

3. Market Mood & Trading Activity (Mixed Effects)

PAXG also behaves like a crypto asset in the short term. It sees about $312 million in daily trading volume and has significant activity in crypto derivatives markets. Technical indicators show strong momentum (RSI-14 at 87.6, MACD bullish), but these also suggest the asset is overbought and may face a price correction soon.

What this means: When crypto markets are doing well, PAXG’s price can rise above the actual gold price due to high trading volumes and positive investor sentiment. However, this also means PAXG is vulnerable to crypto market downturns and sudden sell-offs. The current overbought signals point to increased price swings in the near term, regardless of gold’s direction.

Conclusion

PAXG’s value is mainly guided by gold’s overall market trends, while crypto adoption and investor sentiment influence how fast and how much its price moves. Investors get the benefit of owning gold in a digital form but should be prepared for the ups and downs typical of crypto markets.

The key question remains: Will rising real interest rates slow gold’s rally before tokenization demand hits its next growth phase?

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What are people saying about PAXG?

Conversations around PAX Gold (PAXG) are buzzing with excitement from both technical traders spotting new price highs and investors appreciating its strong regulatory backing. Here’s the latest:

1. Analysts are identifying clear buying opportunities as PAXG tests important resistance levels, supported by gold’s recent price gains.
2. The token’s federal regulatory approval is seen as a major advantage, especially for institutional investors.
3. PAXG is often mentioned among top-performing assets, reinforcing its reputation as a safe investment.

Deep Dive

1. @MasteringCrypt: Buying opportunity as PAXG pulls back slightly — a positive sign

"$PAXG JUST COOLED OFF — THIS IS WHERE THE BOUNCE STARTS... Entry Zone: 4,450 – 4,475... Why this works: Strong impulsive move up, followed by a healthy pullback... buyers stay in control."
– @MasteringCrypt (771 followers · Jan 7, 2026, 08:11 UTC)
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What this means: This suggests a healthy pause in PAXG’s price after a strong rise, which is a good sign that buyers are still in control. Traders see this as a chance to enter before prices potentially climb to $4,650.

2. @Paxos: Federal regulation sets PAXG apart — a big plus

"Now under OCC oversight, PAX Gold is the only institutional grade gold-backed token issued under federal regulatory oversight in the world."
– @Paxos (59.6K followers · Dec 15, 2025, 22:00 UTC)
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What this means: PAXG’s federal regulatory status gives it a strong trust advantage over other tokens. This makes it more attractive to large investors and could increase demand.

3. @CryptoPulse_CRU: PAXG moving toward record highs — momentum remains strong

"🚨 $PAXG is marching toward new all-time highs — watch this level closely 👀... The weekly trend remains firmly bullish..."
– @CryptoPulse_CRU (29.7K followers · Dec 22, 2025, 04:30 UTC)
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What this means: PAXG is showing a strong upward trend over several weeks, and many expect it to break past previous price records soon.

Conclusion

The overall outlook for PAX Gold (PAXG) is positive. Traders are optimistic based on both technical signals and the token’s unique regulatory status. Many are positioning for further price gains, especially if PAXG can break above the $4,500–$4,600 resistance range. This could mark the start of the next upward move.

What is the latest news about PAXG?

PAX Gold (PAXG) is gaining momentum thanks to record-high gold prices and growing interest in blockchain-based gold tokens. Here’s the latest update:

1. Tokenized Gold Breaks $5,000 On-Chain (January 25, 2026) – PAXG and Tether Gold (XAUT) surpassed $5,000, marking a significant price milestone and showing strong 24/7 trading activity.
2. Spot Gold and Silver Reach New Highs (January 24, 2026) – Rising inflation and a weaker U.S. dollar pushed gold and silver prices to record levels, increasing demand for gold-backed crypto tokens like PAXG.
3. PAXG Trading Volume Jumps on Hyperliquid (January 22, 2026) – Trading volume on the Hyperliquid platform surged by over 110%, signaling strong trader interest and market activity.

Deep Dive

1. Tokenized Gold Breaks $5,000 On-Chain (January 25, 2026)

What happened: PAX Gold (PAXG) and Tether Gold (XAUT) recently crossed the $5,000 mark on blockchain platforms, according to CoinCodex. This price jump from around $4,600 shows a clear breakout, with prices steadily rising over several days. Unlike traditional gold markets that close after hours, these tokens trade around the clock, allowing investors to react instantly to economic news like inflation trends and interest rate changes. Big financial institutions, including Goldman Sachs, have raised their long-term gold price predictions to as high as $5,400 per ounce.
Why it matters: This milestone confirms that tokenized gold is becoming a trusted real-world asset in the crypto space. The ability to trade 24/7 gives PAXG an edge in price discovery compared to physical gold markets, attracting more institutional investors.

2. Spot Gold and Silver Reach New Highs (January 24, 2026)

What happened: On January 23, spot gold prices hit $2,750 per ounce, and silver reached $38.50, driven by a weaker U.S. dollar and rising inflation expectations, according to Bitget data. These gains in precious metals have a direct impact on crypto markets, especially for gold-backed tokens. Analysts also point out that gold’s strength supports Bitcoin’s reputation as “digital gold,” with companies like Grayscale seeing indirect benefits.
Why it matters: Since PAXG’s value is tied directly to physical gold, record-high prices for gold provide a strong foundation for its growth. This makes PAXG an attractive option for investors looking for a crypto asset that acts as a safe haven during uncertain times.

3. PAXG Trading Volume Jumps on Hyperliquid (January 22, 2026)

What happened: Trading volume for PAXG contracts on the Hyperliquid exchange jumped 110.82% in just 24 hours, reaching $47.9 million, according to BlockBeats News. Open interest—the total value of outstanding contracts—rose to $71.51 million, and the funding rate stayed positive at 0.0013%.
Why it matters: This surge in trading activity shows growing interest from traders and investors, which improves liquidity (how easily assets can be bought or sold). While higher volume can lead to more price swings in the short term, it generally signals a healthy and active market for PAXG.

Conclusion

PAX Gold (PAXG) is benefiting from a powerful mix of record gold prices, a key technical breakout, and increased trading activity. As the broader cryptocurrency market experiences ups and downs, it will be interesting to see if tokenized gold continues to hold its momentum as a reliable, crypto-native asset.

Why did the price of PAXG go up?

PAX Gold (PAXG) increased by 0.3% in the past 24 hours, a small gain compared to the overall crypto market, which dropped 3.5%. Here’s why:

1. Gold Hits New High: Spot gold prices jumped past $5,000 per ounce, boosting tokenized gold like PAXG.
2. Safe-Haven Demand: Rising market uncertainty (Fear & Greed Index at 34) made gold more attractive.
3. Strong Technical Signals: Positive momentum indicators and higher trading volume supported the rise.

Deep Dive

1. Gold’s Record High (Positive for PAXG)

What happened: On January 25, 2026, spot gold prices climbed above $5,000 per ounce. This was driven by concerns about inflation, geopolitical tensions, and central banks buying gold. PAXG, which represents physical gold on the blockchain at a 1:1 ratio, followed this price increase closely.
Why it matters: Gold is traditionally seen as a safe place to invest during uncertain times. Tokenized gold like PAXG benefits because it can be traded 24/7 on blockchain platforms, allowing prices to adjust faster than in traditional markets. Since PAXG is directly linked to gold, it reacts quickly to changes in gold’s value.

2. Crypto Market Decline (Positive for PAXG)

What happened: The overall cryptocurrency market dropped by 3.5% in 24 hours, with the Fear & Greed Index showing a level of 34, indicating fear among investors. Because PAXG tends to move differently than more volatile cryptocurrencies, investors moved money into it as a safer option.
Why it matters: When crypto prices fall and uncertainty rises, investors often look for more stable assets. PAXG’s low correlation with Bitcoin (-0.1 over 90 days) means it doesn’t move in the same way, making it a good choice for reducing risk during market downturns.

3. Technical Momentum (Positive for PAXG)

What happened: Technical indicators showed strong buying momentum for PAXG. The MACD (Moving Average Convergence Divergence) histogram reached +43.22, signaling upward momentum, and the RSI (Relative Strength Index) was at 82.53, indicating strong buying pressure. Trading volume also increased by 15.7% to $317.6 million.
Why it matters: These technical signals suggest that the price increase is supported by strong market interest and could continue. However, the RSI near 82.53 means PAXG might be approaching an overbought level, so some caution is advised. The next resistance level to watch is the recent high of $5,113 set on January 25.

Conclusion

PAXG’s recent gains reflect gold’s historic price surge and its appeal as a stable asset during crypto market volatility, supported by strong technical momentum. Key question: Can gold maintain its price above $5,000 as the Federal Reserve adjusts its policies?