PAX Gold paxg
What is PAX Gold?
PAX Gold (PAXG) is a gold-backed digital asset issued by Paxos Trust Company, N.A. Each token represents one fine troy ounce of London Good Delivery gold held in LBMA-accredited vaults in London on a segregated basis for PAXG holders. Ownership is represented on Ethereum as an ERC-20 token, allowing fractional interests in investment-grade physical bars to be transferred through compatible wallets and markets. Paxos provides an allocation lookup for eligible on-chain holders showing associated bar serial number, purity and weight. PAXG is not fiat money or legal tender; its value follows gold and it remains subject to Ethereum, custody, market and regulatory risks.
What problem does PAX Gold solve?
Direct ownership of investment-grade allocated gold is difficult: London Good Delivery bars are large, expensive to store and transport, and not easily divisible or transferable. Gold ETFs and futures offer liquidity but generally provide security or derivative exposure rather than direct beneficial ownership of specifically allocated bars. PAXG combines allocated physical-gold backing with blockchain portability and fractional ownership. It aims to make gold easier to hold, transfer and trade, though redemption for a whole bar requires a large minimum and Paxos controls issuance/redemption access through verified accounts and compliance procedures.
How does PAX Gold work?
Paxos issues and destroys PAXG as customers convert between dollars, gold and tokens. Paxos holds corresponding London Good Delivery allocated gold in LBMA-approved vaults; token holders own a pro-rata beneficial interest, and Paxos may reallocate holdings among bars as transfers, issuance and redemption occur. PAXG is an ERC-20 contract on Ethereum (0x45804880De22913dAFE09f4980848ECE6EcbAf78), so balances and transfers are recorded on-chain. Verified Paxos customers may convert PAXG to USD or unallocated Loco London gold, or redeem at least 430 PAXG plus fees per London Good Delivery bar; physical delivery requires arrangements and may involve further due diligence. Paxos publishes monthly reserve reports and independent attestations. Its token has regulatory controls: Paxos can freeze or upgrade tokens and must comply with valid legal directives, including freezes or forfeiture for illegal or sanctioned activity.
Key facts
- Issuer: Paxos Trust Company, N.A., a regulated trust company and qualified custodian
- Ticker: PAXG; each token represents one fine troy ounce of London Good Delivery gold
- Backing: allocated gold held segregated in LBMA-accredited vaults in London
- Token standard: ERC-20 on Ethereum; contract 0x45804880De22913dAFE09f4980848ECE6EcbAf78
- PAXG launched in 2019; Paxos whitepaper records NYDFS approval in July 2019; current Paxos product page describes OCC regulation/approval
- Eligible on-chain holders can look up associated bar serial number, purity and weight
- Verified Paxos customers can convert to USD or unallocated Loco London gold; physical bar redemption requires at least 430 PAXG plus fees per bar and delivery arrangements
- Paxos publishes monthly attestations; KPMG LLP is independent accounting firm for reports posted on/after February 28, 2025
- PAXG is not money or legal tender; gold prices fluctuate and Ethereum congestion, fees, forks or outages can affect transfers
- Paxos terms reserve authority to freeze, upgrade, seize or forfeit PAXG/backing gold when required by law or for illegal or sanctioned activity
Official links
Categories
Related coins
Compare
Frequently asked questions
What is PAX Gold (PAXG)?
PAXG is an ERC-20 token issued by Paxos. Each token represents one fine troy ounce of London Good Delivery gold held in segregated LBMA-accredited vaults in London. It gives holders fractional beneficial ownership of allocated physical gold while allowing blockchain transfer.
Is PAXG backed by real gold?
Paxos says every PAXG is backed one-to-one by allocated London Good Delivery gold held for PAXG holders. Paxos publishes monthly reserve reports and independent attestation reports; eligible on-chain holders can use the allocation lookup to see bar serial, purity and weight.
Can I redeem PAXG for a physical gold bar?
Yes, but physical redemption is not a small-amount retail redemption. Under Paxos terms, a verified customer must redeem at least 430 PAXG plus applicable fees per London Good Delivery bar, complete required due diligence, and arrange delivery. Smaller balances can instead be converted to USD or unallocated Loco London gold through Paxos.
Is PAXG regulated?
Paxos is a regulated trust company and qualified custodian. Paxos's historical whitepaper records NYDFS approval of PAXG in July 2019, while its current product page describes Paxos as regulated by the OCC. Regulation does not eliminate gold-price, Ethereum, custody, liquidity or operational risks.
How does PAXG differ from a gold ETF?
PAXG is a blockchain token representing beneficial ownership of allocated gold, with fractional units and 24/7 transferability on compatible networks. A gold ETF is an exchange-traded security whose structure and investor rights depend on its prospectus; an ordinary holder generally cannot redeem one token for a specific London Good Delivery bar.
Can Paxos freeze PAXG?
Paxos terms state that the token contract has freeze and upgrade capabilities and that Paxos must comply with valid legal directives. PAXG or backing gold may be frozen, seized or forfeited for legally directed reasons, and Paxos may restrict redemption for illegal or sanctioned activity.
Where does PAXG run?
PAXG is an ERC-20 token on Ethereum at 0x45804880De22913dAFE09f4980848ECE6EcbAf78. Check this address before transferring; custodial exchange balances are not directly visible through the public allocation lookup.
External trackers
Choose a tracking site for PAX Gold: