Altcoin Arena: PAX Gold

What Is PAX Gold?

1. What Is PAX Gold?

PAX Gold (ticker PAXG) is a blockchain-based token that represents ownership of physical gold. Each token corresponds to one fine troy ounce of an LBMA-certified London Good Delivery gold bar held in secure vaults. The token combines the stability of gold with the flexibility of blockchain for trading, transfer and use in digital finance. :contentReference[oaicite:1]{index=1}

2. Why PAX Gold Was Created

The traditional gold investment market suffers from high minimums, storage/insurance costs, limited divisibility and slow settlement. PAX Gold was launched to overcome these restraints by:

• Providing fractional ownership of physical gold down to small increments. :contentReference[oaicite:2]{index=2}
• Eliminating or greatly reducing storage and custody burdens for individual holders. :contentReference[oaicite:3]{index=3}
• Enabling near-instant, 24/7 trading and settlement of gold-backed assets on blockchain. :contentReference[oaicite:4]{index=4}
• Combining transparency, regulation and real-asset backing to bridge traditional finance and crypto. :contentReference[oaicite:5]{index=5}

3. How PAX Gold Works

1. An individual or institution buys PAXG tokens via Paxos Trust Company or supported exchanges; physical gold is acquired and held in vaults. :contentReference[oaicite:7]{index=7}
2. Each PAXG token is linked to one fine troy ounce of gold stored in LBMA-certified vaults (e.g., London) and can be traced to the specific bar/serial number. :contentReference[oaicite:8]{index=8}
3. The token is issued as an ERC-20 asset on Ethereum (and often supported on other chains), allowing wallet transfers, trading and DeFi use. :contentReference[oaicite:9]{index=9}
4. Token holders may redeem PAXG for physical gold bars (allocated) or fiat value, or hold/trade it like any digital asset. :contentReference[oaicite:10]{index=10}
5. Monthly third-party attestations/audits verify that the number of PAXG tokens in circulation equals the amount of physical gold held in vaults. :contentReference[oaicite:11]{index=11}

4. Key Features of PAX Gold

• Fully-backed by physical gold on a 1:1 basis — each token equals one fine troy ounce of gold. :contentReference[oaicite:12]{index=12}
• Low minimums and fractional ownership capabilities, enabling broader access to gold investment. :contentReference[oaicite:13]{index=13}
• No storage fees charged to token holders; gold is custody-held by regulated entities. :contentReference[oaicite:14]{index=14}
• Tokenised asset benefits: fast settlement, wallet transfers, DeFi integration and tradeability. :contentReference[oaicite:15]{index=15}
• Regulated issuer (NYDFS-chartered) with monthly audits and transparent vault reporting. :contentReference[oaicite:16]{index=16}
• Redeemability for physical gold bars or fiat value, giving real asset backing. :contentReference[oaicite:17]{index=17}

5. Who Can Use PAX Gold?

• Retail investors seeking exposure to gold without the hassle of bar purchase, storage or transport.
• Crypto investors and DeFi users who want gold-backed token exposure within their digital portfolios.
• Institutions looking for regulated, auditable, gold-backed tokens that can integrate into digital asset strategies.
• Asset managers and portfolio diversifiers using tokenised real-world assets to hedge or balance risk.
• Developers and platforms leveraging PAXG as collateral or underlying asset in DeFi protocols.

6. What Is the $PAXG Token?

$PAXG is the digital token that represents ownership of physical gold within the PAX Gold ecosystem. It has the following roles and utilities:

• Ownership & Transparency: Holding $PAXG gives you a claim on physical gold held in vaults; holders can verify serial numbers and allocation. :contentReference[oaicite:18]{index=18}
• Tradeability & Liquidity: $PAXG trades like an ERC-20 token — it can be bought, sold, transferred and used in DeFi. :contentReference[oaicite:19]{index=19}
• Redeemability: Tokens can be redeemed for allocated gold or fiat value upon request under issuer terms. :contentReference[oaicite:20]{index=20}
• Fixed Backing Structure: Issuance is directly tied to actual gold acquisition and custody, maintaining the 1:1 backing. :contentReference[oaicite:21]{index=21}
• Integration Use Cases: $PAXG serves as a collateral or asset in digital finance, enabling gold-based strategies in a tokenised format. :contentReference[oaicite:22]{index=22}

If you’re asking “What is PAX Gold?”, it’s the regulated, blockchain-based way to own physical gold via a digital token.