PAX Gold | Trading Non Stop

What is PAXG?

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

Gold-Backed Digital Asset – Every PAXG token is fully backed 1:1 by LBMA-certified gold bars.
Regulated & Redeemable – Issued by Paxos Trust Company under New York State Department of Financial Services (NYDFS) supervision, tokens can be exchanged for physical gold or cash.
Fractional Ownership – Allows you to invest in gold in very small amounts, with no minimum purchase or storage fees.

Deep Dive

1. Purpose & Value Proposition

PAXG combines the stability of gold with the speed and convenience of blockchain technology. Traditional gold investing often requires large upfront costs, ongoing storage fees, and can be difficult to buy or sell quickly. PAXG solves these problems by turning gold into digital tokens that can be traded instantly worldwide, 24/7. You can own as little as 0.000001 PAXG, which is about $0.004 worth of gold, making gold investment accessible to everyone.

2. Technology & Transparency

PAXG is an ERC-20 token on the Ethereum blockchain, which means it benefits from blockchain’s transparency and security. Each token corresponds to specific gold bars stored in Brink’s vaults, complete with serial numbers and purity information that anyone can verify using Paxos’ audit tool. Additionally, independent third-party firms like WithumSmith+Brown conduct monthly audits to confirm that the gold reserves match the tokens in circulation.

3. Key Differentiators

PAXG stands out from other gold-backed tokens such as Tether Gold (XAUT) because of:

Regulatory Oversight: It operates under a trust charter from NYDFS, providing strong legal protections and accountability.
Flexible Redemption Options: Institutional investors can redeem tokens for unallocated gold or large 400-ounce LBMA bars, while regular investors can exchange tokens for cash.
Lower Costs & Faster Settlement: There are no storage fees, transaction costs are lower than traditional gold ETFs, and trades settle almost instantly, unlike the typical two-day delay (T+2) in traditional gold markets.

Conclusion

PAXG offers a new way to own gold by combining trusted, institutional-grade storage with the ease and accessibility of blockchain technology. Its regulated structure and ability to redeem tokens for physical gold help build trust, which is often a concern with digital assets tied to real-world commodities. As blockchain technology becomes more widely adopted, PAXG’s approach could set the standard for how real-world assets are tokenized and traded.