Gold has stood the test of time as a reliable store of value, but owning and trading physical gold is costly, illiquid, and logistically complex. Pax Gold (PAXG) offers an innovative solution by bringing real, physical gold ownership to the blockchain with the efficiency of digital assets.

Launched by Paxos Trust Company, a regulated financial institution, PAXG is a digital asset backed by physical gold stored in LBMA-approved vaults in London. Each PAXG token represents one fine troy ounce of a 400 oz London Good Delivery gold bar, combining the timeless appeal of gold with the flexibility and speed of crypto.

What is the PAXG Token?

PAXG is an ERC-20 token on the Ethereum blockchain, representing direct ownership of physical gold. Unlike gold ETFs or synthetic gold tokens, PAXG provides title to actual gold bars, which are allocated to the token holders. It’s the only gold token backed by a regulated institution and redeemable for physical gold or fiat.

Key Features of PAXG:

• Fully-Backed by Physical Gold: Each token equals one fine troy ounce of gold stored in Brink’s vaults, fully allocated.
• Regulatory Compliance: Issued by Paxos Trust Company, a New York State-chartered trust regulated by the NYDFS.
• Redeemable and Swappable: PAXG can be redeemed for physical gold, fiat, or unallocated gold via Paxos. Users can also swap tokens through exchanges and platforms.
• Real-Time Allocation: PAXG holders can view the serial number, purity, and weight of their gold bar through the Paxos dashboard.
• Ethereum Compatibility: As an ERC-20 token, PAXG can be stored in any Ethereum-compatible wallet and used across DeFi protocols.

Transparency and Regulation

Paxos leads the industry in transparency and regulatory oversight:

• Monthly Attestations: Third-party auditing firm Withum verifies that the total supply of PAXG tokens is 100% backed by physical gold.
• State-Level Regulation: Paxos is overseen by the New York Department of Financial Services, maintaining compliance with strict financial standards.
• Consumer Protections: Paxos holds all customer assets in bankruptcy-remote, segregated accounts.

Institutional and Retail Use Cases

PAXG is designed to cater to both retail investors and institutions looking for exposure to gold without the drawbacks of physical storage or traditional gold investment vehicles:

• Hedge Against Inflation: PAXG offers the same inflation-resistant benefits as physical gold, without custody or transport risks.
• Global Accessibility: Anyone with an internet connection and Ethereum wallet can own gold, breaking down barriers to entry.
• Instant Liquidity: Unlike traditional gold, PAXG can be traded 24/7 on global crypto exchanges or converted into fiat.
• Integration with DeFi: Users can use PAXG as collateral, earn yield, or participate in DeFi markets while holding gold exposure.

Security and Technology

PAXG is built with robust safeguards:

• On-Chain Transparency: Users can track and verify gold allocation and audit reports directly.
• Wallet and Platform Security: Paxos offers institutional-grade security infrastructure with multi-factor authentication, secure custody, and API access.
• Platform Functionalities: The Paxos Dashboard allows users to monitor token balances, track gold allocations, and redeem assets smoothly.

The Paxos Platform: Regulated Infrastructure for Digital Assets

Beyond PAXG, Paxos operates a powerful suite of blockchain infrastructure products for stablecoins, crypto brokerage, and tokenized commodities:

• Paxos Crypto Brokerage: Allows fintechs and platforms to integrate crypto trading, including PAXG, directly into their apps via powerful APIs.
• Stablecoin-as-a-Service: Paxos powers stablecoins like PayPal USD (PYUSD) and has issued billions in tokenized dollars under full regulatory compliance.
• Wallet UI & Dashboard: Paxos offers users a platform to buy, sell, track, and redeem digital assets with real-time visibility and reporting.
• Regulatory Focus: Paxos is a regulated financial institution making sure every product it offers complies with U.S. regulatory standards.
• Physical Redemption and OTC Services: Paxos enables high-volume institutional clients to trade and redeem PAXG via its OTC desk, while retail users can access gold exposure through streamlined user experiences.

Conclusion

Pax Gold (PAXG) links centuries-old value with modern financial technology. Backed by physical gold and issued by a regulated entity, PAXG offers a secure, transparent, and accessible way to own gold in the digital age. Whether you're seeking inflation protection, asset diversification, or a blockchain-native form of gold ownership, PAXG delivers unmatched convenience and reliability.