What Is PAX Gold PAXG: Crypto Backed By Gold

This makes allocated gold safer than either unallocated gold or even physically owning the gold yourself. Soon after that they became regulated qualified custodians, enabling them to branch out from stablecoins to digital gold. As an ERC-20 stablecoin, pax gold is programmable within the Ethereum ecosystem. Customers are able to use the PAXG asset in a manipulation-resistant environment governed by an algorithmic blockchain-based network. PAXG tokens benefit tremendously from Ethereum’s broad market utility, widespread adoption, and widely used smart contract standard.

Allocated Gold Vs. Unallocated Gold

1. The value of PAX Gold tracks with the real-time market price of gold.
2. Those looking for a project that combines the security of gold with the new-age convenience of crypto should consider investing in this project.
3. PAX Gold makes it easy for investors to own gold by removing the difficult process of storing, securing, and transporting physical gold.

Paxos has created a variety of other crypto projects including PAX Dollar (USDP), a digital dollar and stablecoin. Paxos has received strong institutional support and has raised over $500 million in total funding from investors like OakHC/FT, Mithril Partners, and PayPal Ventures. PAX Gold was created by the Paxos Trust Company, a New York–based financial institution and tech company specializing in blockchain technology. Paxos was founded in 2012 by Charles Cascarilla — a former Goldman Sachs analyst — and Richard Teo — a former analyst at Cedar Hill Capital Partners. You can own PAXG via a crypto centralized exchange, so you can begin by creating a Gate.io account.

How do you feel about PAXG today?

Tokenization helps democratize access to gold and mitigate many of the fundamental challenges within the global gold market. PAXG offers investors a cost-effective way to own https://cryptolisting.org/ investment-grade physical gold with all the benefits of the blockchain. Each Pax Gold (PAXG) token is backed by one fine troy ounce of gold, stored in LBMA vaults in London.

About PAX Gold

The highest price paid for PAX Gold (PAXG) is BTC0.3758, which was recorded on Apr 13, 2024 (3 days). Comparatively, the current price is -15.90% how to earn cash with bitcoin lower than the all-time high price. Charles Cascarilla is the founder and chief executive officer of both Paxos Standard and Pax Gold.

PAX Gold Latest News

In the traditional markets investors can certainly buy as much physical or allocated gold as they like, but along with the purchase comes the high risk of physical gold. The process of tokenization allows anyone in the world to own fractional amounts of gold via PAXG with a minimum purchase of 0.001 troy ounce (t oz), or about $20 USD at time of this writing. This methodology substantially reduces the barrier to entry by making gold ownership more accessible — especially for retail investors and those unable to purchase entire gold bars.

If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company. PAX Gold works on the Ethereum network like any other token in ERC-20 protocol. One token represents the ownership of one troy ounce of a London Good Delivery gold bar, stored in professional vaults in London and held in custody by Paxos Trust Company.

The PAXG token is an ERC-20 token at the time of writing, but the whitepaper does not specify that this platform is necessary, and Paxos could reissue PAXG on a different platform in the future. It seems almost certain that gold will continue to be a valued commodity and a crucial component of the global economy. However, whether PAX Gold will continue to succeed within the competitive landscape of gold and crypto remains to be seen.

This means that there is a PAXG coin for each ounce of gold in rotation covered by the Pax Gold protocol. In this sense, the amount of PAXG tokens in circulation changes frequently. With decentralized finance growing so rapidly Paxos Gold now gives gold investors the opportunity to do something they could never do with physical gold – earn interest.

PAXG is the only gold token you can redeem for LBMA-accredited Good Delivery gold bullion bars. Institutional customers can also redeem for unallocated Loco London Gold. However, it’s important to note that gold ETFs do not provide investors any actual ownership of gold. PAX Gold offers the same price exposure and simplicity of Gold ETFs, while also providing investors with actual ownership of physical gold.

Some factors that will impact PAX Gold’s future success are as follows. The trading volume of PAX Gold (PAXG) is $25,321,012.77 in the last 24 hours, representing a -6.40% decrease from one day ago and signalling a recent fall in market activity. Proof-of-work protocols represent a classic approach to cryptocurrency mining, Bitcoin being the most prominent example. Ethereum has, however, recently begun its transition to the proof-of-stake (PoS) model, aiming to reduce the resources necessary for token mining, among other things.

Each PAXG token is backed by a fraction of a piece of London Good Delivery gold bar, stored in Brink’s gold vaults, which is the approved storage company by the London Bullion Market Association. Pax gold is designed as an Ethereum-based asset that adheres to ERC-20. This means it is compatible with all Ethereum wallets and gives practically anyone with access to a mobile phone the ability to hold PAXG in a permissionless environment, with reduced risk of seizure or theft.

Paxos is best known for its stablecoin called Paxos Standard, which is a fully-collateralized U.S. dollar stablecoin. Just one year later in September 2019 Paxos launched Paxos Gold (PAXG) a fully-collateralized digital asset that represents one fine troy ounce of a London Good Delivery gold bar. Paxos offers PAXG at a lower cost structure than that of other gold tokens, gold ETFs and LBMA 400 t oz bars, with a low minimum purchase amount and zero storage fees. Gold is one of the world’s oldest and most successful forms of currency. Even in today’s age of decentralized digital cryptocurrency and other technical innovations, gold has remained as prominent as ever. However, owning gold is still quite difficult and inaccessible for most individual investors.

These fees do not apply when purchasing & selling tokens through our exchange order book or anywhere else outside the Paxos wallet. If you wish to purchase or sell PAXG through our exchange order book your trades may be subject to applicable trading fees. PAX Gold is a gold-backed cryptocurrency that provides investors with direct price exposure to and ownership of gold. While the company behind PAX Gold has yet to define a roadmap for the project, it has a wealth of crypto experience and is fully licensed and regulated. Those looking for a project that combines the security of gold with the new-age convenience of crypto should consider investing in this project.