PAxG $ $BTC
PAX Gold (PAXG) is a digital token of the ERC-20 type backed by real gold and legally regulated, combining ownership of physical gold with the liquidity of blockchain technology.
Backed by gold: Each PAXG unit represents one troy ounce of gold certified by LBMA and stored in the vaults of Brink’s.
Legally regulated: Operates under the supervision of the New York State Department of Financial Services (NYDFS) with monthly audits and support from PayPal Ventures.
Integration with decentralized finance (DeFi): Its use as collateral in protocols like Aave and Curve is increasing.
In-depth overview
1. Purpose and value
PAXG solves the problem of accessing and dividing gold by converting physical gold into digital tokens. Unlike traditional investments in gold that require large amounts, PAXG allows for fractional ownership down to 0.000001 ounces, eliminating storage and transportation costs. Its price closely follows the spot price of gold (CoinMarketCap), making it a hedge against inflation in the digital currency world. During geopolitical tensions such as the Iran-Israel conflict in June 2025, PAXG saw a 194% increase in trading volume as investors turned to safe assets (Coin Edition).
2. Technology and infrastructure
As an ERC-20 token, PAXG benefits from the security and compatibility of the Ethereum network. Users pay an issuance and redemption fee of 0.02% to Paxos (Kraken) in addition to typical gas fees. Smart contracts enable transparent ownership tracking, while monthly audits confirm compliance.