PAX Gold (PAXG) is a digital token issued by Paxos Trust Company, where each token represents one fine troy ounce of a London Good Delivery gold bar stored in Brink's vaults in London. Launched in September 2019, PAXG allows investors to gain exposure to physical gold through an ERC-20 token on the Ethereum blockchain, without the costs of physical storage and insurance.
How PAXG Works
Each PAXG token is backed 1:1 by a specific, serialised gold bar. Token holders can look up the serial number, refiner, and weight of their allocated bar using Paxos's lookup tool. PAXG holders technically own the underlying gold, not a claim or derivative.
Tokens can be purchased directly from Paxos (minimum 0.01 PAXG, approximately $31 at current prices) or traded on exchanges including Kraken, Binance, and Coinbase. PAXG can also be transferred between Ethereum wallets, enabling gold to move as easily as sending a cryptocurrency transaction.
Fees
Paxos charges a creation and destruction fee of 0.02% (minimum $20) when minting or redeeming tokens directly. There is no storage fee, which contrasts with traditional gold ETFs that charge annual expense ratios (GLD charges 0.40%). On-chain transfers incur standard Ethereum gas fees.
Regulation
Paxos is regulated by the New York State Department of Financial Services (NYDFS) and is required to maintain full reserves backing all outstanding PAXG tokens. Monthly attestation reports are published by an independent accounting firm. This regulatory framework makes PAXG one of the more transparent tokenised asset products available.
PAXG vs XAUT (Tether Gold)
PAXG's main competitor is Tether Gold (XAUT), issued by TG Commodities Limited, which is associated with Tether. Both represent one ounce of gold, but they differ in transparency and regulatory oversight. PAXG has NYDFS regulation and monthly attestations, while XAUT's parent entity has faced scrutiny over the quality of its reserve disclosures. As of March 2026, PAXG has a market capitalisation of approximately $550 million, while XAUT holds around $700 million.
Should You Consider PAXG?
PAXG may suit investors who want gold exposure without physical storage, prefer blockchain-based settlement, or wish to use gold as collateral in DeFi protocols. However, it carries counterparty risk (reliance on Paxos), smart contract risk, and Ethereum network risk. Traditional gold ETFs (GLD, IAU) remain the most liquid option for most investors.
For PAXG details, visit Paxos PAX Gold. For real-time gold prices, see Kitco Live Gold.