Let deepResearch help me create a research report on PAGX - Gold Token:

1 - The gold bars stored in London by Paxos Gold (PAXG) are **"Allocated Storage"**, not "Unallocated Storage".

✅ What is "Allocated Storage"?

In the gold market, "Allocated" means that each piece of gold has a clear allocation target and serial number. The physical gold bars are registered under the owner’s name, isolated in a vault, and can be traced to specific bar serial numbers. This method ensures:

The ownership of the gold belongs to you, not to the custodian;

The gold bars are exclusively stored and not shared with others;

Even if the custodian or platform goes bankrupt, this gold will not be used to pay debts;

You can query the specific bar number and storage vault corresponding to your PAXG through the system provided by Paxos.

🔒 PAXG is fully "Allocated Gold"

Paxos explicitly states that the gold behind PAXG consists of "allocated London Good Delivery bars". These gold bars:

Are stored in the Brink's vault in London;

Are registered separately in the name of Paxos Trust Company;

Each unit of PAXG can be traced back to a specific bar (users can check their bar information on the official website).

🚫 What does "Unallocated Storage" mean?

"Unallocated" refers to gold stored in a vault but not allocated to specific clients. This gold is more like a bank's "receivables", where clients hold a claim rather than specific physical assets. This storage method is common in the gold derivatives market (such as paper gold, certain bank precious metal accounts), and may face "runs" or "asset shortages" in systemic risks.

Conclusion:

The gold held by PAXG is **100% Allocated Storage** of London Good Delivery bars, providing the strongest legal protection and clarity of ownership. Compared to unallocated storage or paper gold, this model offers holders the maximum level of security and sovereign control.

2 - XAU is also independently stored.

However, there are significant differences between PAXG and XAU, especially at the legal entity level:

PAXG is a compliant financial product, where U.S. investors have a clear beneficiary status protected by the "Trust Law";

The legal ownership of XAU₮ is ambiguous, making it difficult for investors to claim physical gold ownership in court, resembling more of a "you trust Tether to hold it for you".

For details, see the chart.

Lastly, Tether Gold (XAU₮) and USDT are both subsidiaries of the same parent company group (iFinex Inc.), but they are legally and asset-wise independent and do not bear responsibility for each other.

Therefore, PAGX generally has a premium over XAU.