PAX Gold Token (PAXG)
- Fund Managers
- Financial Institutions
PAX Gold (PAXG) is a stablecoin that provides holders with tokenized ownership of gold bullion stored in secure Brink’s vaults. PAXG tokens are backed by the equivalent fine troy ounces (t oz) of London Good Delivery gold bars, and may be redeemed as physical gold or as USD at the prevailing gold market price. This stablecoin is issued by the Paxos Trust Company, a regulated financial institution and qualified custodian.
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|Hardware Wallets||Ledger, Trezor|
Pros and Cons
- Accessibility - PAXG provides access to fractional gold ownership with a low minimum of 0.01 PAXG, equivalent to about $15.
- Liquidity - PAXG is currently listed on several reputable exchanges, including Kraken.
- Regulatory Compliance - PAXG’s issuer, Paxos Trust Company, is a state-chartered trust company regulated by the NYDFS (New York State Department of Financial Services).
- Customer Protection - As PAXG is issued by a state-chartered trust company, customer assets are protected in the event that the company becomes insolvent.
- ERC20 - PAXG is an ERC20 token, which provides tokenholders with 24/7 maneuverability across the Ethereum blockchain.
- Regular Audits - PAXG is subject to regular financial audits from a third-party accounting firm in order to confirm that the tokens maintain a 1:1 parity with London Good Delivery gold. PAXG’s smart contract has been audited by three third-party blockchain security firms: Nomic Labs, Trail of Bits, and ChainSecurity.
- Asset Protection Role - PAXG issuers must comply with court orders or other legal processes, and are required to freeze or seize assets involved in illegal activity. The Asset Protection Role also compels the issuer to freeze, unfreeze, or eliminate a specified user’s PAXG balance when ordered by the appropriate authorities.
- KYC Requirements - Only verified users are able to buy, convert, or redeem PAXG tokens for USD or physical gold at approved locations. In the event that the issuer's Paxos Contractual Documentation is breached, they reserve the right to not issue, convert, or redeem a user’s PAXG tokens.
PAX Gold Token (PAXG) Exchanges
PAX Gold Token (PAXG) Interest Rates
|Platform||APY Rate||Lockup Terms||Deposit Amounts|
|Crypto.com||1% - 4%||3 Months||$25 - $1,000,000|
|BlockFi||4%||Flexible||$0 - $1,000,000|
|Nexo||6%||Flexible||$0 - $1,000,000|
|Celsius Network||4.51%||Flexible||$1 - $1,000,000|
PAX Gold Token Alternatives
PAX Gold (PAXG) FAQ
Is PAX Gold a stablecoin?
PAXG is a stablecoin backed by physical gold; 1 PAXG token is equivalent to 1 fine troy ounce of a 400 oz London Good Delivery gold bar.
Is PAX Gold safe?
PAXG is issued by a regulatory-compliant company with customer account balances subject to regular third-party audits. Customer funds remain separate from the assets of the issuing company.
Is PAX Gold a good investment?
PAXG provides investors with the same value proposition of physical gold, in addition to the liquidity, security, and divisibility of digital assets powered by Blockchain technology.
Where can I buy PAX Gold?
Can I earn interest on PAX Gold?
PAX Gold (PAXG) Summary
PAX Gold (PAXG) is an asset-backed stablecoin developed as an ERC20 token on the Ethereum blockchain, combining the value proposition of gold with the maneuverability of digital assets. PAXG presents an efficient way to buy, hold, trade, lend, and transfer gold without the security, divisibility, and portability challenges typically associated with gold bars.
- Fully Collateralized: - Paxos Trust Company ensures that the circulating supply of PAXG is backed at a 1:1 ratio by physical gold bars held in secure Brink’s vaults.
- Trusted Issuer: - Paxos Trust Company has a successful track record of developing and maintaining stablecoins including Paxos Standard (PAX) and Huobi Dollar (HUSD).
- Accessibility - PAXG’s low minimum order requirement provides individuals with fractional ownership in LBMA-accredited London Good Delivery gold bars at retail investor friendly costs.
- Interest Accounts: - PAXG holders can earn interest on their holdings through crypto asset interest accounts offered by Nexo and Crypto.com. Additionally, through Nexo's platform, users can also access short and medium term loans secured against their PAXG tokens.
- Fractional Ownership: - For the vast majority of investors, physical gold bars are difficult to afford. As an alternative, PAXG provides access to fractional gold ownership with a minimum purchase of 0.01 PAXG, currently equivalent to $15.
- Legitimacy: - Paxos Trust Company, PAXG's issuer, is fully regulated and licensed by the NYDFS (New York State Department of Financial Services). The company maintains frequent, publicly-available audits to ensure that customer balances are cumulatively backed 1:1 to the circulating PAXG supply.
- KYC Requirements: - PAXG can only be purchased directly by verified users. Those who heavily value their privacy might find PAXG's KYC requirements invasive.
- Asset Protection Role: - In compliance with regulatory responsibilities, the issuer must adhere to legal requirements when asked to freeze, unfreeze, or wipe a user’s account.
PAXG's many benefits include the ability to hedge against crypto asset volatility, fractional gold ownership, APY rates on holdings through digital asset interest accounts, and access to crypto loans secured against PAXG holdings.
Blockfer recommends PAX Gold (PAXG) for investors, fund managers, family offices, exchanges, and professional traders.