PAX Gold (PAXG), launched in September 2019, is a tokenized asset providing digital ownership of physical gold, with each token backed 1:1 by one fine troy ounce of London Good Delivery gold bar. Issued by Paxos Trust Company (a NYDFS-regulated entity) and operating on the Ethereum blockchain, PAX Gold combines the stability of gold with blockchain efficiency. It enables easy trading, transfers, and hedging in crypto markets, while allowing redemption for physical gold bars, allocated/unallocated gold, or fiat, serving as a regulated bridge for investors seeking gold exposure without storage hassles or high minimums.

Key Features

  • Gold-Backed Stability: Pegged to the price of physical gold, offering a hedge against volatility and inflation.
  • Blockchain Support: Available on Ethereum (ERC-20) for secure and interoperable transactions.
  • High Divisibility & Liquidity: Fractionable to fine degrees; traded on major exchanges with solid daily volume.
  • Ecosystem: Used for DeFi collateral, hedging, tokenized real-world assets (RWA), and institutional portfolios.

PAXG Token

  • Purpose: Digital ownership of gold for trading, transfers, storage of value, and physical redemption.
  • Supply: Circulating supply of approximately 341,000 PAXG (as of mid-December 2025), issued based on gold purchases with no fixed maximum.
  • Contract Address: On Ethereum, PAXG’s contract is 0x45804880de22913dafe09f4980848ece6ecbaf78 (addable to MetaMask).
    CoinGecko
    CoinMarketCap

Who Are the Founders of PAX Gold?

PAX Gold was launched by Paxos Trust Company, a regulated blockchain infrastructure provider and custodian, known for issuing stablecoins like USDP and PYUSD. Founded by Charles Cascarilla (CEO) and Rich Teo in 2012, Paxos operates under strict oversight from the New York State Department of Financial Services (NYDFS), emphasizing trust and compliance in digital assets.

What Makes PAX Gold Unique?

PAX Gold (PAXG) stands out in the tokenized gold space for its regulatory rigor:

  • Market Position: Second-largest tokenized gold asset by market cap
  • Direct Ownership & Redemption: Holders can verify specific gold bar serial numbers via wallet address; redeemable for LBMA Good Delivery bars (institutional), unallocated gold, or fiat with low barriers.
  • No Custody Fees: Absorbs storage/insurance costs, making it more cost-effective than physical gold or many ETFs.
  • Transparency & Regulation: Monthly independent attestations (e.g., by KPMG in 2025), NYDFS oversight, and public lookup tools for reserves.

PAXG Updates (2025)

  • Reserve & Price Growth: Benefited from gold’s rally to over $4,400/oz, with PAXG hitting ATH ~$4,448 in October 2025; tokenized gold sector AUM exceeded $3–4B.
  • Integrations & Adoption: Enhanced DeFi presence (e.g., Aave, Curve); institutional inflows amid regulatory clarity discussions (e.g., GENIUS Act impacts).
  • Audits & Compliance: Switched to KPMG for attestations post-February 2025; founding partner in Tokenized Commodities Council for industry standards.

How Is PAXG Secured?

PAX Gold and PAXG are secured through:

  • Physical Gold Reserves: 100% backed by allocated LBMA-standard gold bars stored in secure Brink’s vaults (London), verifiable via serial numbers and public lookup tool.
  • Blockchain Security: Leverages Ethereum’s consensus mechanism.
  • Redemption Process: Direct conversion to physical gold, unallocated gold, or fiat after verification via Paxos platform.
  • Audits: Monthly independent attestations (KPMG in 2025), confirming full backing under NYDFS regulation.

Conclusion

PAX Gold (PAXG) is a leading regulated tokenized gold asset, delivering physical gold ownership through blockchain for seamless trading, divisibility, and global access. With strong liquidity, full physical backing, no custody fees, and superior regulatory transparency, it appeals to institutions and retail alike for hedging, DeFi, and RWA. Amid 2025’s gold bull run and growing tokenized commodities adoption, PAXG offers a trusted, compliant exposure to the timeless safe-haven asset. For latest data, check official sources like paxos.com/pax-gold or major trackers.