Paxos Trust business, a financial institution and blockchain technology business based in New York, developed PAX Gold. In 2012, Charles Cascarilla and Richard Teo, both former analysts at various firms (Teo was at Cedar Hill Capital Partners and Cascarilla was at Goldman Sachs), launched Paxos.
PAX Gold isn't the only cryptocurrency project Paxos has undertaken. They also launched PAX Dollar (USDP), a digital US dollar and stablecoin, in addition to PAX Gold.
They have received strong institutional backing and have raised over $500 million in total from investors such as OakHC/CFT, Mithril Partners and PayPal Ventures.
As mentioned earlier, Pax Gold is tokenized gold that runs on a blockchain network. Tokenization is the digital transformation of physical and intangible assets into cryptocurrency. The PAXG token specifically represents the physical gold of the Paxos trust company. Gold is a good store of value because it retains its value over time. As a result, it is frequently employed as a hedge against inflation. When the dollar loses its value, gold becomes more expensive in dollars and vice versa.
As a result, gold is a popular option for investors seeking to preserve their capital from inflation. The serial numbers on PAXG tokens correspond to those on individual gold bars. Entering a person's Ethereum wallet address into the PAXG search tool can reveal the serial number, value, and other details of a holder's physical gold. Holders also have the option to convert their PAXG into fiat currency, another cryptocurrency, or allocated and unallocated gold bars at the current gold price.
