PAX Gold (PAXG) is a digital representation of gold that runs as an ERC-20 token. It is fully supported by physical gold reserves. These reserves are kept in custody by Paxos Trust Company inside secure Brinks vaults located in London, UK. Each PAXG token corresponds to one fine troy ounce (t oz) backed by a 400 oz London Good Delivery gold bullion bar. Paxos-the organization behind PAXG-was co-founded in 2012 by Charles Cascarilla (the current CEO) and Rich Teo. Paxos is a for-profit, regulated financial technology firm focused on modernizing finance by creating infrastructure that lowers the friction between physical and digital assets. It was the first virtual currency company to receive a charter from the New York State Department of Financial Services. In 2018, Paxos launched its first cryptocurrency, Paxos Standard (PAX), which is a 1:1 digital asset backed by US dollars held by Paxos in US bank accounts.

 Paxos introduced PAXG in 2019. With PAXG, users can access the economic protection of holding gold while benefiting from the accessibility, speed, and mobility associated with digital assets. Overall, the project aims to broaden who can access gold.

What are PAXG’s key features and how does it work?

When you hold PAXG, you also have rights to the physical gold equivalent that is held in custody by Paxos Trust Company. PAXG holders may request allocation to specific real gold stored in the vaults, and at any time they can check the serial number and physical details of their gold via the Paxos platform. To help maintain correct reserve coverage, an independent auditing firm reviews transactions monthly to confirm that the physical gold reserves match the amount of PAXG tokens in circulation.

PAXG can be redeemed for gold at any time. If someone holds more than 430 PAXG tokens, they can redeem physical gold bullion bars. Smaller redemptions are also possible through a worldwide network of smaller partner gold retailers via the Paxos platform. Users can additionally redeem PAXG tokens for US Dollars.

What is noteworthy about PAXG?

PAXG offers a number of advantages. Most importantly, it can be a less expensive way to own gold compared with traditional approaches: holders get exposure to gold stored in highly secure vaults without paying for the storage themselves. Also, conventional methods of buying gold bars often require relatively large minimums, limiting access mostly to major corporations or affluent individuals. By contrast, PAXG has very low minimums-its tokens are divisible up to 18 decimal places, and the smallest purchase on the Paxos platform is 0.01 PAXG, enabling many participants to own a portion of a London Good Delivery gold bar. There are transaction fees, though. Because PAXG is an ERC-20 token, transfers are subject to Ethereum gas fees, and Paxos charges additional fees for creating and redeeming PAXG tokens; these fees remain low (between 0.02-1%).

By turning gold into a token, people looking to invest in cryptos gain exposure to a digital asset tied to a recognized real-world commodity, with long-term value that may be steadier than many cryptocurrencies and less predictable fiat currencies, supporting economic security. It is also broadly accessible, enabling more users-especially those in regions with unstable fiat-to hold a more stable asset. PAXG additionally emphasizes quick, convenient exchangeability and high privacy.

What can PAXG be used for?

PAXG supports multiple use cases today. It can be traded against other cryptocurrencies on cryptocurrency exchanges. It can also function as a dependable store of value.

Where can you buy PAXG?

Pax Gold can be purchased on the CEXs and DEXs listed here. Common options include Binance and Uniswap. Since PAXG’s value is pegged to the physical gold it represents, its price moves with current gold prices. The PAXG price can also differ by exchange. For more detailed pricing data, please check the price charts above.