What Is PAX Gold (PAXG)?
PAX Gold (PAXG) is an Ethereum-based digital token backed by physical gold stored in London Good Delivery vaults. Each PAXG token represents one troy ounce of a 400 oz gold bar, with its value pegged to real-time gold prices. Issued by Paxos Trust Company—a regulated New York trust—PAXG merges the stability of gold with blockchain’s efficiency.
Key Features of PAXG
- 1:1 Gold-Backed: Fully collateralized by allocated gold bars.
- Regulated Custody: Audited reserves held by Paxos Trust.
- Blockchain Efficiency: Enables instant trading, transfers, and redemption.
- Financial Utility: Used as collateral, in DeFi protocols, and institutional APIs.
Why Invest in PAX Gold?
1. Digital Gold Accessibility
PAXG eliminates barriers like storage costs and logistical hassles of physical gold. Investors trade or redeem tokens seamlessly on exchanges like OKX.
2. Transparency and Security
Paxos publishes monthly proof-of-reserves audits, ensuring every PAXG is backed by verifiable gold. The Ethereum blockchain adds immutable transaction records.
3. Financial Flexibility
- Trading: Swap PAXG for other crypto/fiat assets.
- Collateral: Secure loans using PAXG’s stable value.
- Institutional Integration: Paxos offers APIs for businesses leveraging PAXG.
👉 Discover PAXG trading pairs on OKX
How PAXG Compares to Other Gold Tokens
| Feature | PAXG | Competitors (e.g., Tether Gold) |
|------------------|---------------|---------------------------------|
| Issuer | Paxos Trust | Private Companies |
| Regulation | Fully Regulated | Varies |
| Redemption | Direct Physical Gold | Often Complex |
| Blockchain | Ethereum | Multiple |
Frequently Asked Questions (FAQs)
Q1: Is PAXG safer than holding physical gold?
A: PAXG offers equivalent security without physical risks (theft, damage). Paxos’ regulatory compliance and audits add trust.
Q2: Can I redeem PAXG for physical gold?
A: Yes! Token holders can request redemption of physical gold bars through Paxos (minimum 430 oz for London Good Delivery bars).
Q3: How is PAXG’s price determined?
A: PAXG’s value mirrors LBMA Gold Price benchmarks, updated in real-time.
Q4: Where can I buy PAXG?
A: Major exchanges like OKX list PAXG with USD, BTC, or ETH trading pairs.
Conclusion: The Future of Gold Investment
PAXG bridges traditional gold markets with decentralized finance (DeFi), offering liquidity, transparency, and utility. Whether for portfolio diversification, collateral, or institutional use, PAXG redefines gold ownership in the digital age.
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