What is PAXG?



Gold, always keeping the real value of the inflationary world

PAXG is a tokenized digital asset representing physical gold. Each PAXG token is backed by one troy ounce of a 400 oz London Good Delivery gold bar, securely stored in professional vaults.

https://paxos.com/paxgold/

The value of PAXG is directly linked tåΩo the market price of gold, giving investors an easy and secure way to access the gold market without the complications of physical ownership. Built on the Ethereum blockchain, PAXG is fully compliant with Ethereum’s ERC-20 standard, ensuring transparency and security in its operations.

Why is PAXG the Best Choice?

  • Backed by Real Gold: Every PAXG token corresponds to actual gold stored in secure vaults. Paxos Trust Company, a regulated financial institution, ensures that the gold is audited and stored safely. This provides peace of mind to investors that their digital holdings are fully backed by physical assets. Traditional gold ownership may involve concerns about the purity, sourcing, and storage of gold, but with PAXG, these are all professionally managed by a trusted entity.
  • Liquidity and Convenience: One of the key advantages of PAXG is its high liquidity. Unlike physical gold, which can be challenging to sell or trade quickly, PAXG can be traded 24/7 across multiple cryptocurrency exchanges. It offers flexibility that physical gold does not: you can buy, sell, or transfer PAXG tokens in seconds, making it easy to liquidate your investment or move it across borders without any of the physical constraints.
  • Lower Costs and Accessibility: Buying physical gold involves various costs such as dealer markups, storage fees, and insurance. PAXG eliminates these extra expenses by leveraging blockchain technology. Furthermore, fractional ownership is possible with PAXG, meaning you don’t need to purchase an entire ounce of gold. You can buy smaller portions of gold with PAXG, making it accessible to more investors, regardless of their budget.
  • Regulated and Transparent: Paxos Trust Company, the issuer of PAXG, is a regulated entity under the supervision of the New York Department of Financial Services (NYDFS). This means that PAXG is held to high standards of governance, transparency, and consumer protection. The underlying gold reserves are audited and verified regularly, offering complete transparency to investors. Unlike unregulated gold markets, you can trust that PAXG complies with legal and regulatory frameworks.
  • Redeemable for Physical Gold: Unlike most gold-backed digital assets, PAXG can be redeemed for physical gold. Investors who own sufficient PAXG tokens can choose to redeem them for London Good Delivery bars, either by having them delivered or by picking them up from the vault. This feature bridges the gap between digital and physical assets, providing investors with both flexibility and control over their investments.

While physical gold ownership has its benefits, PAXG offers significant advantages that cater to modern investors:

  • No Need for Physical Storage: With PAXG, you don’t need to worry about finding a secure vault, paying for insurance, or dealing with theft risks.
  • Instant Access: Physical gold trades can be slow and cumbersome, while PAXG allows for near-instant transfers and trades thanks to the blockchain.
  • Global Reach: PAXG can be sent globally in minutes, offering a level of liquidity and mobility that physical gold cannot match. You can transfer value across the world without the complications of physically moving gold.
  • Fractional Ownership: You can own smaller fractions of gold with PAXG, making gold investment more affordable and flexible for smaller investors.

PAXG is used not only for investment purposes but also within the broader cryptocurrency and financial ecosystem:

  • Trading: PAXG is listed on major crypto exchanges, allowing investors to trade it like any other cryptocurrency.
  • Collateral for Loans: PAXG can be used as collateral in DeFi (Decentralized Finance) platforms, providing liquidity without needing to sell the underlying asset.
  • Hedge Against Volatility: Just like physical gold, PAXG is used by investors to hedge against market downturns or currency depreciation, but with greater flexibility.

PAXG offers a modern, secure, and flexible way to invest in gold. By combining the stability of gold with the convenience of digital assets, PAXG outshines traditional gold ownership. 

It eliminates the complexities and costs of physical gold, providing a transparent, regulated, and instantly accessible alternative. Whether you are a long-term gold investor or new to the market, PAXG is a game-changer in how we store, trade, and use gold in the digital age.