PAX Gold (PAXG) is a regulated, gold-backed cryptocurrency that allows investors to own physical gold with the efficiency of a digital asset. Launched in September 2019 by Paxos Trust Company, each PAXG token is backed 1:1 by one fine troy ounce of a 400 oz London Good Delivery gold bar.
Market Summary (as of 12 March 2026)
Live Price: Approximately $5,167.78.
Market Capitalization: Roughly $2.58 Billion.
Circulating Supply: 499,961 PAXG.
24-Hour Trading Volume: About $93.27 Million.
Core Mechanism and Security
PAXG operates as an ERC-20 token on the Ethereum blockchain, combining the stability of gold with the 24/7 liquidity of crypto markets.
Physical Backing: The underlying gold is stored in secure, LBMA-accredited vaults, such as Brink's in London.
Regulation: Paxos is a New York-chartered trust company overseen by the New York State Department of Financial Services (NYDFS).
Audits: To ensure 1:1 backing, an independent third-party accounting firm performs monthly audits to verify that the gold reserves match the token supply.
Transparency: Using the Paxos Lookup Tool, holders can enter their Ethereum address to view the specific serial number and physical characteristics of their vaulted gold bar.
Key Benefits for Investors
Fractional Ownership: Unlike traditional gold bars, PAXG is divisible to 18 decimal places, allowing users to buy as little as 0.01 oz (~$50 at current rates).
No Storage Fees: Paxos does not charge ongoing custody or storage fees, though standard Ethereum gas fees and a small 0.02% transaction fee apply.
Instant Settlement: While physical gold or ETFs may take days (T+2) to settle, PAXG settles in minutes on the blockchain.
Redeemability: Large-scale holders (minimum 430 PAXG) can redeem tokens for physical gold bars. Smaller amounts can be converted to USD or other cryptos on exchanges.
Risks and Considerations
Counterparty Risk: Investors rely on Paxos Trust Company to maintain the vaults and honor redemptions.
Network Fees: As an Ethereum-based token, gas fees can become expensive during periods of high network congestion.
Price Volatility: PAXG's value is directly tied to the spot price of gold; if gold prices drop, the value of PAXG will decrease accordingly.
Comparison: PAXG vs. Tether Gold (XAUT)
PAXG and Tether Gold (XAUT) are the two leading gold-backed tokens.
Regulation: PAXG is generally preferred by compliance-focused investors due to its NYDFS regulation and monthly audits.
Liquidity: XAUT often has higher trading volumes and a larger market cap (approx. $2.9B), making it a common choice for active crypto traders.
Would you like to explore how to use PAXG as collateral in DeFi protocols, or do you need a list of exchanges where it is currently traded?
