PAX Gold (PAXG): What It Is and Why You Should Care About It
2025-03-03
PAXG provides an efficient and affordable alternative to physical gold investment by leveraging blockchain technology.
Each Pax Gold (PAXG) token is backed by one troy ounce of pure gold securely stored in LBMA vaults in London.
Owning PAXG is equivalent to owning physical gold stored by Paxos Trust Company. Below is an in-depth explanation of PAXG.
What is PAX Gold (PAXG)?
PAX Gold (PAXG) is a leading digital asset backed by physical gold. Each PAXG token represents one troy ounce of a 400-ounce London Good Delivery gold bar.
The price of PAX Gold follows gold market movements, making it a more stable crypto investment with lower volatility.
This cryptocurrency is issued by Paxos Trust Company, and the market value of its circulating supply is backed by physical gold bars stored in secure vaults. This mechanism is similar to how stablecoins hold fiat currency reserves to maintain their peg.
To ensure transparency and security, Paxos Trust Company conducts monthly audits and publishes the results.
These audits verify that the number of PAXG tokens in circulation matches the amount of physical gold stored. The process is overseen and regulated by the New York State Department of Financial Services.
Read More: How to Buy PAX Gold (PAXG)
What is the PAXG Token?
PAX Gold (PAXG) is an ERC-20 token built on the Ethereum blockchain. Each PAXG token represents one troy ounce of pure gold from a 400-ounce London Good Delivery gold bar, which can be tracked using its unique serial number.
This cryptocurrency provides investors with access to gold price movements and investment opportunities that are difficult to reach through conventional means.
The advantage of investing in crypto assets like Pax Gold (PAXG) is the convenience of avoiding the physical challenges associated with storing and securing gold reserves. Instead, investors can manage their holdings conveniently from home.
Who Founded PAX Gold (PAXG)?
Paxos Trust Company was founded in 2012 by Charles Cascarilla and Rich Teo to provide a more accessible and reliable asset transfer solution.
Cascarilla, with a background in finance and experience in capital management, has also been involved in various traditional and blockchain-based venture capital projects.
In 2018, the company launched Paxos Standard (PAX), a stablecoin pegged to the US dollar and backed by reserves held in US banks.
In 2021, PAX was rebranded as Pax Dollar (USDP). This stablecoin remains one of the top 10 asset-backed cryptocurrencies.
In 2019, Paxos Trust Company introduced PAX Gold (PAXG), a digital asset backed by physical gold stored in vaults secured by Brinks. The company undergoes regular monthly audits to ensure that its gold reserves match the circulating tokens.
Paxos Trust Company has gained strong institutional support and secured over $500 million in funding from prominent investors, including OakHC/FT, PayPal Ventures, and Mithril Partners.
How Does PAXG Work?
PAX Gold (PAXG) essentially represents physical gold in digital form. As an ERC-20 token built on the Ethereum network, PAXG can be used across various decentralized applications (dApps) and decentralized exchanges (DEXs) within the DeFi ecosystem.
A small fee of 0.02% is charged when minting or burning PAXG tokens. Additionally, users must pay gas fees for each transaction on the Ethereum network.
PAXG simplifies gold investment by allowing fractional ownership up to 18 decimal places, eliminating barriers such as transportation and storage costs associated with physical gold.
Each PAXG token has a unique serial number corresponding to the gold bar held as a reserve. Token holders can check their gold bar details through the PAXG lookup tool. PAXG can also be redeemed for physical gold, fiat currency, or other cryptocurrencies at the prevailing market gold price.
FAQ
What is PAX Gold (PAXG)?
PAX Gold (PAXG) is a leading digital asset backed by physical gold. Each PAXG token represents one troy ounce of a 400-ounce London Good Delivery gold bar.
What is the PAXG Token?
PAX Gold (PAXG) is an ERC-20 token built on the Ethereum blockchain.
How Does PAXG Work?
PAX Gold (PAXG) essentially represents physical gold in digital form. As an ERC-20 token built on the Ethereum network, PAXG can be used across various decentralized applications (dApps) and decentralized exchanges (DEXs) within the DeFi ecosystem.
Disclaimer: The content of this article does not constitute financial or investment advice.
