XAUT (Tether Gold) and PAXG (Paxos Gold)
both represent one troy ounce of physical gold pegged 1:1 to London Good Delivery
bars, but they differ significantly in regulatory structure and market focus.
XAUT is issued by TG Commodities (Tether), stored in Swiss vaults, and prioritizes liquidity,
multi-chain support (Ethereum, Tron), and lower trading fees for active crypto traders.
PAXG is issued by Paxos Trust Company, stored in London vaults (Brink's), and
emphasizes strict US regulatory compliance (NYDFS), monthly third-party audits, and
greater transparency for institutional and long-term investors.
Key Differences
FeatureXAUT (Tether Gold)PAXG (Paxos Gold)IssuerTG Commodities (Tether
Affiliate)Paxos Trust CompanyRegulationOffshore (BVI);
Licensed in El SalvadorNYDFS Regulated (US Trust Company)Audit FrequencyQuarterly
(BDO Italia)Monthly (Independent Auditor)StorageSwitzerlandLondon (LBMA
Approved Vaults)ChainsEthereum, TronEthereum, SolanaRedemptionPhysical
Gold (Min ~430 tokens)Physical Gold or USD (Min ~430 tokens)Fees~0.25% Mint/Redeem;
No StorageTiered; No Storage FeePrimary AudienceActive Traders, Crypto
NativesInstitutions, Long-term Holders
XAUT is generally preferred for high-frequency trading due to tighter spreads and
broader integration within the Tether ecosystem, while PAXG is favored for
compliance and safety due to its segregated custody and rigorous US regulatory oversight.
