PAX Gold, or PAXG, is a digital asset backed by real physical gold. Each PAXG token is fully backed by one fine troy ounce of gold stored in professional vaults in London. This gives holders the benefits of owning gold without needing to store or transport it themselves.
Built on Ethereum, PAXG allows anyone to own and transfer gold easily and securely using blockchain technology. The token is issued by Paxos Trust Company, a regulated financial institution based in the United States.
Unlike traditional gold investments that may come with high minimums or storage fees, PAXG makes gold accessible to anyone with an internet connection and a crypto wallet.
How does PAXG work?
When someone buys PAXG, they are effectively buying real gold held in custody. Paxos ensures that each token remains backed 1:1 with physical gold, which is audited regularly. This gold is stored in secure vaults operated by trusted custodians like Brink’s.
Since PAXG runs on Ethereum, users can hold the token in any Ethereum-compatible wallet. They can also send, receive, or trade it just like any other crypto asset. This makes gold significantly more liquid and easier to use across digital platforms.
What is the PAXG token used for?
The PAXG token allows users to invest in gold in a way that is simple, secure, and scalable. It can be used as a store of value, a hedge against inflation, or as collateral in decentralised finance protocols. Some investors also use PAXG to diversify their crypto portfolios with exposure to a traditional asset like gold.
Because it is backed by physical gold, the price of PAXG closely tracks the spot price of gold, making it a reliable digital representation of real-world value.
Who created PAX Gold?
PAX Gold was created by Paxos Trust Company, a regulated fintech company based in New York. Paxos was co-founded by Charles Cascarilla, who serves as the company’s CEO. The firm is known for building blockchain-based infrastructure for financial markets and is also behind other regulated assets like the Pax Dollar (USDP).
Paxos is regulated by the New York State Department of Financial Services, giving PAXG a strong compliance foundation.
Tip
Keen to explore PAX Gold a bit more? You can learn about PAXG basics and get all the latest cryptocurrency news on Luno Discover.
Want to know how to buy, sell, send, or receive PAXG? We’ve got answers in the following help articles:
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.