PAX Gold

Overview

PAX Gold (PAXG) is a digital asset where each token represents ownership of one fine troy ounce of physical gold stored in Brink's vaults. It was created by Paxos Trust Company, a regulated financial institution, and launched in September 2019.

Purpose and Utility

The primary purpose of PAXG is to provide a digital way to own physical gold. Each token is backed 1:1 by physical gold held in professional vaults, with ownership rights enforced through smart contracts on the Ethereum blockchain. Token holders can redeem their PAXG for physical gold through Paxos.

Business Model

The business model is straightforward and transparent: Paxos purchases and stores physical gold, then tokenizes it. They generate revenue through minimal fees on token creation and redemption. The gold backing each token is regularly audited by third parties, and ownership records are publicly verifiable on the blockchain.

Real-World Adoption

PAXG has achieved significant adoption as a digital gold solution, with a market capitalization over $500 million as of 2024. It's widely traded on major cryptocurrency exchanges and has integration with various DeFi protocols.

Platform Development

The platform maintains regular updates and improvements to its infrastructure. Paxos continues to expand partnerships and maintain necessary regulatory compliance as a regulated financial institution.

Token Distribution

PAXG tokens are minted based on actual gold purchases and destroyed upon redemption. There is no pre-mine or founder allocation, as tokens are only created when backed by physical gold.