The PAX Gold token (PAXG) is a digital asset that represents one fine troy ounce of a London Good Delivery gold bar. The gold bar is stored in professional vaults in London. Unlike other gold-backed tokens by owning PAXG you own the underlying gold which is held under the custody of Paxos Trust Company. Therefore, the PAX Gold tokens represents real-time value of Gold.
At any time, PAXG holders can lookup the serial number, value and physical characteristics of their vaulted gold just by entering their Ethereum wallet address on the PAXG lookup tool on www.paxos.com
The PAXG is and ERC-20 token running on the public Ethereum blockchain. This makes the token compatible with all wallets that accept ERC-20 tokens. All transactions are done via smart contracts eliminating human errors.
What are the key benefits of PAX Gold?
• Allocated – PAX Gold is a token that operates on the Ethereum blockchain and is backed by physical gold. The token can be allocated down to the serial number of each individual bar. PAX Gold can be transferred instantly, and the allocated ownership moves with the token transfer. This makes the purchase and trading of gold faster and easier than even.
• Redeemable – Unlike any other gold products available today PAX Gold is redeemable in several forms. PAX Gold owners can convert the tokens into unallocated gold entitlements, physical allocated gold or fiat. PAX Gold is the only gold token that you can redeem for LBMA-accredited Good Delivery gold bullion bars. For additional convenience, smaller amounts can be redeemed through a network of physical gold retailers around the world. Institutional customers can also redeem for unallocated Loco London Gold. Paxos customers can always redeem for USD at current gold market prices.
• Regulated – PAX Gold is issued by a financial institution regulated by the NYDFS called Paxos Trust Company. Next to the regulated company the NYDFS also regulated the individual product PAX Gold as well, ensuring a greater customer protection and higher standard of operation. Which means that PAX Gold as a product is specifically approved by the NYDFS as well.
• Higly Accessible –Built as an ERC-20 token on the Ethereum blockchain, PAXG can easily be moved or traded anywhere in the world, 24/7. With low investment minimums, now anyone can own a fraction of an LBMA-accredited London Good Delivery gold bar.
• Low Fees – Extremely competitive fee structure for creations and redemptions of PAXG tokens (0.03-1% based on volume tiers) in the Paxos wallet, low on-chain Ethereum transaction fees (0.02%) for and zero storage fees. As with other ERC-20 tokens, nominal Ethereum gas fees apply for on-chain transactions.
• Trusted –Paxos is a trust company and custodian, regulated by the New York State Department of Financial Services. PAXG is also approved and regulated by the DFS and fully-backed by allocated gold held in the most secure, leading vaults in the world. A nationally ranking auditor will attest to the matching supply of PAXG tokens and underlying gold every month.
• Decentralized – No single entity or group has a controlling stake of tokens and can control the entire market. PAX Gold can therefore not vary from the Gold price.
Why should I buy tokenized Gold?
Tokenized Gold has several advantages compared to other types of Gold investment such as:
• No custody fees
• Instant settlement
• Very low minimal amount
• Instantly redeemable in physical form
How much gold is backing the total supply of PAX Gold (PAXG)?
The amount of gold representing the total supply of PAXG is a 1:1 ratio – one fine troy ounce of gold equals one PAXG token. The total supply of gold representing PAXG changes continuously as the market capitalization of PAXG increases and decreases.
How can I track my gold and do a physical redemption?
The PAX Gold underlying gold is based on physical London Gold Delivery gold bars. Each bar is identifiable by a serial number and can be allocated to the corresponding tokens. Therefore, the PAX Gold token represents a fractional ownership of the LBMA accredited physical gold bar that is stored
in professional gold vaults in London. If you hold the PAXG in your private ERC-20 wallet you can track the location, the fine weight, the serial number, as well as brand of the gold.
If you have 430 PAXG you can request a physical delivery of the London Gold Delivery Gold Bar by registering on PAXG website. The gold can also be converted into unallocated gold entitlements and be redeemed in smaller amounts of physical gold by the worldwide Paxos partner network of
gold retailers available on PAXG website.
For more information about PAXG please refer to :
PAX Gold Whitepaper
Disclaimer: The risk of loss in trading tokenized commodities can be substantial. You should therefore carefully consider whether such investment is suitable for your risk profile and overall asset allocation. This is not financial advice.