PAX Gold

About PAX Gold (PAXG)

What Is PAX Gold (PAXG)?

PAX Gold (PAXG) is a token representing ownership of physical gold. Each PAXG is backed by one fine troy ounce of a London Good Delivery bar, held on an allocated, segregated basis in LBMA-accredited vaults in London. It is issued by Paxos Trust Company, which also custodies the metal. Because the claim is to specific allocated bars rather than a pooled position, holders can look up the serial number of the gold tied to their wallet.

Official resources:

• Product page: https://www.paxos.com/pax-gold
• Issuer documentation: https://docs.paxos.com/guides/stablecoin/paxg
• Ethereum contract: https://etherscan.io/token/0x45804880De22913dAFE09f4980848ECE6EcbAf78
• Solana mint: https://solscan.io/token/5GgRAEmv8ZxF2PR5hY72Qs5x1bnQ6UK2RbTPoqJ3wSwW

Who Founded PAX Gold? (History)

PAXG was launched in 2019 by Paxos, the regulated blockchain infrastructure company founded in 2012 by Charles Cascarilla and Rich Teo. In December 2025 Paxos converted its New York state limited-purpose trust charter into a national trust charter supervised by the US Office of the Comptroller of the Currency.

How PAX Gold Works

Paxos buys London Good Delivery bars and places them in allocated storage with vault partners in London. When a customer creates PAXG, tokens are minted against a specific quantity of that metal, each token corresponding to one troy ounce. Because bars vary in weight, ownership is tracked fractionally, and PAXG is divisible far below an ounce, so small purchases are possible.

Tokens can be redeemed with Paxos for US dollars at prevailing gold rates, and eligible customers can redeem for physical London Good Delivery bars or unallocated Loco London gold. Paxos publishes monthly attestation reports on the gold held.

Key Ecosystem Components

• Paxos Trust Company as issuer and custodian
• Allocated storage in LBMA-accredited London vaults
• The serial number lookup tool, mapping a wallet address to specific bars
• Monthly third-party attestation reporting

PAXG Token Utility

PAXG is a title to gold in token form. It is used to hold gold exposure on-chain, to move gold value between parties in minutes rather than through a bullion settlement process, and as collateral in lending markets and derivatives venues that accept it. PAXG confers no governance rights and pays no yield, because gold itself pays no yield.

What Makes PAX Gold Unique?

Two features are hard to match. The gold is allocated rather than pooled, so specific bars are assigned and holders can verify which via the serial number lookup. And eligible customers can redeem for actual LBMA Good Delivery bullion, not just cash. Paxos also states there are no storage fees charged to holders.

How PAX Gold Differs from Similar Projects

Tether Gold is the closest comparison and also represents allocated gold, though in Swiss vaults and under a different issuer and regulatory posture. Gold ETFs give similar exposure through a brokerage but cannot settle on-chain, do not trade around the clock and charge an expense ratio. Pooled gold tokens are cheaper to run but leave holders as general creditors. PAXG sits at the conservative end: allocated metal, a supervised custodian, published attestations, and physical redeemability for those who qualify.

Use Cases of PAX Gold

• Holding gold exposure inside an on-chain portfolio
• Collateral in DeFi lending markets and on venues that list it
• Fractional gold ownership for buyers who cannot practically hold a bar

How PAX Gold Is Secured

Security is primarily custodial and legal. The gold is allocated and segregated, not commingled with Paxos corporate assets, and stored in LBMA-accredited vaults. Paxos operates as a regulated trust company and custodian and publishes monthly attestations of holdings. On-chain it is a standard, long-established token contract, and the issuer can freeze addresses when legally required.

Risks and Considerations

• This is a custodial product. Holders depend on Paxos as issuer and custodian, and on the vault operators it uses.
• Attestations are periodic reviews, not continuous proof of reserves.
• Paxos can freeze balances or block addresses in response to legal or compliance requirements.
• Physical redemption is limited to eligible customers, with minimums and logistics costs. Most holders will only redeem for cash.
• The token tracks the gold price, so it carries full commodity price risk and no yield.
• On-chain liquidity is thinner than for major stablecoins, so large trades can move the market against you.

Why PAX Gold Matters

Gold is the oldest reserve asset, and PAXG is one of the more credible attempts to make it behave like a digital bearer instrument: divisible, transferable in minutes, usable as collateral, and still backed by allocated metal with a redemption path.

Where Can You Buy PAX Gold (PAXG)?

PAXG is available on many centralized exchanges and on decentralized exchanges on Ethereum, with Solana liquidity as well. Approved customers can also create and redeem tokens directly with Paxos.

Storage Options After Purchase

PAXG is an ERC-20 token on Ethereum and an SPL token on Solana, so a standard wallet for the relevant network holds it. A hardware wallet is sensible for meaningful balances. Add the token using the verified contract address above. The serial number lookup works against a wallet address, so self-custody preserves that verification path.

Related Coins

• Tether Gold (XAUt)
• Matrixdock Gold (XAUM)
• Pax Dollar (USDP)
• Global Dollar (USDG)
• Ondo US Dollar Yield (USDY)