PAX Gold | Trading Non Stop

What is PAXG?

PAX Gold (PAXG) is a regulated cryptocurrency built on the Ethereum blockchain, where each token represents ownership of one troy ounce of physical gold securely stored in vaults.

Gold-backed digital asset – Every PAXG token is backed 1:1 by LBMA-certified gold bars kept in Brink’s vaults.
ERC-20 token – Created on Ethereum, allowing easy access worldwide, fractional ownership, and smooth use with crypto wallets and exchanges.
Redeemable and regulated – Issued by Paxos Trust Company, regulated by the New York State Department of Financial Services (NYDFS), with regular audits and options for holders to redeem tokens for physical gold.

Deep Dive

1. Gold-Backed Structure

PAXG turns physical gold into a digital asset, combining the reliability of gold with the convenience of blockchain technology. Each token corresponds to a specific gold bar stored in vaults certified by the London Bullion Market Association (LBMA). This setup removes the hassle and cost of storing gold yourself and lets you own even tiny fractions of gold (as small as 0.000001 PAXG). Monthly audits by firms like KPMG confirm that the gold reserves match the tokens in circulation, ensuring trust and transparency (Paxos).

2. Ethereum-Based Technology

As an ERC-20 token, PAXG uses Ethereum’s blockchain to enable secure and nearly instant transfers. It works with decentralized finance (DeFi) platforms and is available for trading 24/7 on major exchanges like Binance and Kraken. Unlike physical gold, which can take days to buy or sell, PAXG can be moved anywhere in the world within minutes, making it a flexible and liquid asset.

3. Regulatory Compliance and Redemption

Paxos Trust Company, the issuer of PAXG, is regulated by the New York State Department of Financial Services (NYDFS), ensuring strong oversight. Token holders can redeem their PAXG for physical gold bars (starting at one token) or for cash. Institutional investors also have the option to exchange tokens for unallocated gold. This regulatory backing and the ability to redeem tokens for real gold set PAXG apart from many other cryptocurrencies that don’t have tangible assets behind them (Whitepaper).

Conclusion

PAXG offers the stability of gold combined with the speed and accessibility of blockchain technology. It provides a regulated and easy way to invest in gold digitally. As tokenized assets become more popular, PAXG’s strong compliance and real-world backing could help it gain wider acceptance in both the crypto world and traditional finance.