PAXG (Pax Gold) is one of the most popular physical gold tokenized assets in the cryptocurrency market, issued by Paxos Trust Company. It perfectly combines traditional gold investments with blockchain technology, allowing users to easily hold and trade 'digital gold'. Basic concept

  • What each PAXG represents: 1 PAXG = 1 ounce (troy ounce) of physical gold (purity ≥ 99.5%) meeting the London Good Delivery standard.

  • Gold Storage: Stored in professional vaults such as Brink’s in London, managed by Paxos Trust Company (a trust company regulated by the New York State Department of Financial Services NYDFS).

  • Ownership: Holding PAXG means having legal ownership of the corresponding physical gold, rather than just a debt claim or derivative.

  • Blockchain: An ERC-20 token based on Ethereum, freely transferable in wallets, DEX, and CEX.

PAXG is generally considered more reliable in terms of regulatory strength, transparency, and DeFi ecosystem compatibility. How to acquire and use it: Mainstream exchanges such as Binance, Kraken, Coinbase, OKX, Bybit, etc., have trading pairs like PAXG/USDT, PAXG/USD.

Holding: Supports Ethereum wallets like MetaMask, Ledger.

Use: Hedge asset (to hedge against crypto market volatility)

DeFi Yield (lending, liquidity mining)

Cross-border transfer of gold value (no physical transport needed)

Long-term holding of gold (no need to worry about storage)

Risk Warning Gold Price Risk: PAXG price fluctuates with gold price (the gold price at the end of 2025 is about $4,400–$4,500/ounce, and the PAXG price is generally consistent).

Platform Risk: Although Paxos is regulated, caution is still advised regarding exchange/wallet security.

Redemption Threshold: To redeem a full gold bar directly from Paxos, you need 430+ PAXG; regular users usually choose to sell or exchange for USD.

Summary: PAXG is currently one of the safest and most transparent on-chain gold solutions, suitable for investors who wish to balance gold hedging with crypto liquidity. If you want to simply hold physical gold without worrying about the storage of gold bars, PAXG may be one of the best digital choices available.