Looking to invest in gold without the hassle of physical storage? PAX Gold (PAXG) is disrupting this age-old market by offering a crypto token backed by real gold. Each PAXG represents one ounce of physical gold stored in secure vaults, blending the stability of gold with the flexibility of cryptocurrencies.
PAX Gold is a crypto token that represents real ownership of physical gold. Unlike most cryptocurrencies that aren’t backed by anything tangible, each PAXG token is equivalent to exactly one troy ounce of fine gold (approximately 31.1 grams) stored in Brink’s vaults in London.
Launched in September 2019 by Paxos Trust Company, PAXG was created to solve a fundamental problem: how to make gold investment more accessible, divisible, and easy to transfer, while maintaining the intrinsic qualities of this precious metal?
The stored gold meets the London Good Delivery standard, guaranteeing a minimum purity of 99.5%. Each token has a unique serial number corresponding to a specific gold bar, allowing holders to verify their gold’s details through the Paxos website.
PAX Gold was launched in September 2019, during an economic context marked by growing uncertainties. At that time, trade tensions between the United States and China, recession fears, and accommodative monetary policies from central banks were driving many investors toward traditional safe-haven assets like gold.
Paxos Trust Company, founded in 2012 under the initial name itBit and rebranded in 2016, is the company behind PAXG. Already known for its Paxos Standard (PAX) stablecoin backed by the US dollar, the company identified an opportunity: combining the age-old appeal of gold with the advantages of blockchain technology.
The two co-founders, Charles Cascarilla (current CEO) and Rich Teo, bring complementary expertise to the project. Cascarilla, a Harvard graduate with experience at Goldman Sachs and Bank of America, possesses deep knowledge of traditional financial markets and a clear vision for blockchain technologies.
What distinguishes Paxos from many crypto companies is its proactive regulatory approach. The company obtained a bank charter from the State of New York and operates under the supervision of the New York State Department of Financial Services (NYDFS), one of the strictest financial regulators in the United States.
The year 2020, with the COVID-19 crisis, confirmed the relevance of this approach. Faced with global economic uncertainties and massive liquidity injections by central banks, demand for gold exploded, and PAXG benefited from this trend.
PAX Gold’s functioning is based on a simple but ingenious mechanism. Paxos purchases physical gold compliant with the London Good Delivery standard and stores it in secure vaults. For each ounce of gold acquired, a PAXG token is created on the Ethereum blockchain as an ERC-20 token.
When you buy PAXG, you become the legal owner of the corresponding physical gold. This isn’t just a promise or a derivative: it’s a real ownership right, guaranteed by legal contracts and the strict regulation that Paxos adheres to.
Traceability is at the core of the system. Each PAXG token is linked to a specific gold bar via a unique serial number. By entering your Ethereum address on the Paxos website, you can see the precise details of the gold you own: weight, purity, refiner, serial number, and storage location.
To ensure transparency, Paxos collaborates with independent auditors who verify monthly that the amount of stored gold exactly matches the number of tokens in circulation. These audit reports are publicly accessible.
If you wish to convert your tokens into physical gold, it’s possible under certain conditions (minimum of 430 tokens, equivalent to a standard bar). But the main benefit of PAXG lies precisely in being able to invest in gold without having to manage the logistical constraints of physical metal.
Here are the key data regarding PAX Gold’s tokenomics :
The uniqueness of PAXG lies in its elastic supply : new tokens are created only when Paxos acquires additional physical gold, and tokens are destroyed when holders exchange them for physical gold or fiat currency. This approach ensures that each token remains backed by a real ounce of gold.
Unlike cryptocurrencies like Bitcoin that have a fixed maximum supply, PAXG’s supply can theoretically increase indefinitely, as long as Paxos continues to acquire gold. This characteristic eliminates speculative risks related to artificial scarcity.
The daily trading volume of PAXG (approximately €83 million) demonstrates solid liquidity, with a volume/market cap ratio of about 13%, which is considerable for an asset backed by a physical commodity.
PAX Gold (PAXG) is attracting more and more investors looking for a digital asset backed by tangible value. However, like any investment, it presents both strengths and risks that should be evaluated.
How does PAXG compare to other gold investment options ? Here’s a comprehensive comparison with physical gold and gold ETFs :
| Criteria | PAX Gold (PAXG) | Gold ETF | Physical gold |
| Real ownership | Yes, direct ownership of physical gold | No, shares of a fund holding gold | Yes, direct possession |
| Divisibility | Divisible up to 18 decimals | Limited by the price of a share | Limited by the size of the smallest coins |
| Storage | Managed by Paxos, no fees for the user | Managed by the ETF issuer, included in fees | Investor’s responsibility |
| Fees | 0.02% per transaction + Ethereum gas | Annual management fees (0.25% to 0.40%) | Storage, insurance, custody fees |
| Liquidity | 24/7 on crypto platforms | Limited to market hours (5 days/week) | Requires a physical buyer |
| Accessibility | Global with internet connection | Requires a brokerage account | Requires physical access |
| Counterparty risk | Dependence on Paxos | Dependence on the ETF issuer | None (direct possession) |
| DeFi usage | Can be integrated in DeFi protocols | Not usable in DeFi | Not usable in DeFi |
Gold ETFs like SPDR Gold Shares (GLD) or iShares Gold Trust (IAU) dominate the gold investment market with hundreds of billions of dollars in assets under management. These ETFs provide exposure to gold via traditional stock markets but don’t confer direct ownership of physical gold.
For traditional investors already familiar with stock markets, gold ETFs often represent the simplest solution. For those who prioritize direct ownership without logistical constraints, or who wish to integrate gold into a diversified crypto portfolio, PAXG constitutes a particularly attractive alternative.
The price of PAX Gold is directly linked to the price of physical gold on international markets, with an almost perfect correlation. This fundamental characteristic distinguishes PAXG from most cryptocurrencies, whose prices are primarily determined by speculative supply and demand.
At the time of writing this article, PAXG is trading around $3,068, reflecting the current value of an ounce of gold. Over the past year, the token has seen an increase of approximately 16%, driven by several factors: geopolitical tensions, persistent inflationary fears, and diversification of reserves by certain central banks.
From a technical perspective, PAXG currently presents several interesting signals:
PAXG typically shows a negative correlation with the US dollar (USD) and a weak or negative correlation with major cryptocurrencies like Bitcoin and Ethereum. This characteristic makes it an excellent diversification tool in a crypto portfolio.
💡 It’s important to note that PAXG’s price may sometimes show slight premiums or discounts compared to the spot price of gold, generally in the range of ±0.5%, depending on liquidity conditions on different exchange platforms.
Wondering where to buy PAX Gold? Several exchange platforms are available, but Bitget stands out as one of the most advantageous options for English-speaking investors.
Bitget offers an optimal user experience for purchasing PAXG, with multiple trading pairs available (PAXG/USDT, PAXG/BTC, PAXG/EUR). The platform distinguishes itself with significant liquidity, ensuring tight spreads and fast order execution. Trading fees are competitive, starting at 0.1% and decreasing based on your trading volume.
Among other notable platforms offering PAXG are :
Here’s a step-by-step guide to acquiring PAX Gold on Bitget :
You can deposit euros directly via SEPA transfer or credit card, or transfer cryptocurrencies you already own.
For optimal security, you can transfer your PAXG tokens to a personal wallet like MetaMask or Ledger.
💡 Note that withdrawals typically involve fixed fees, so it may be wise to make fewer withdrawals but for larger amounts.
Several analysts anticipate a continued rise in gold (and therefore PAXG) in the medium and long term. Here are the compiled predictions from different sources:
These forecasts are based on the assumption that gold will continue to play its role as a safe-haven asset in a context of global economic uncertainty and growing public debt. They also assume gradual adoption of tokenized assets by traditional investors.
💡 It’s important to note that these predictions remain speculative and that many factors can influence the price of gold: central bank policies, discoveries of new deposits, technological developments in mining extraction, or changes in industrial demand.
The future of PAX Gold looks promising, driven by several fundamental trends that should support its development in the coming years.
Growing integration into the DeFi ecosystem represents one of the most significant developments for PAXG. Platforms like Aave and Compound are considering integrating PAXG as collateral for loans, while protocols like Yearn Finance could create specific yield farming strategies.
Expansion to other blockchains is also on the horizon. Currently limited to Ethereum, PAXG could be deployed on networks like Solana, Avalanche or Polygon, reducing transaction fees and improving token accessibility.
Institutional adoption should accelerate with the progressive clarification of the regulatory framework for digital assets. Banks, pension funds, and family offices could integrate PAXG into their allocation strategies, bringing significant capital to the market.
PAX Gold represents a financial innovation that deserves the attention of investors looking to diversify their portfolio. This token intelligently combines the intrinsic qualities of gold with the flexibility of cryptocurrencies.
PAXG’s strengths are numerous: its exemplary transparency with regular audits, its strict regulation by the NYDFS, its divisibility that democratizes access to gold, and its progressive integration into the DeFi ecosystem that opens unprecedented yield possibilities.
On the weaknesses side, transaction fees on Ethereum can be high for small amounts, liquidity remains lower than that of major cryptocurrencies, and dependence on Paxos constitutes a counterparty risk, even if this is mitigated by the regulatory framework.
PAXG is particularly suitable for investors looking to diversify their crypto portfolio with a less volatile asset. It represents an excellent entry point for traditional investors wishing to explore the blockchain ecosystem while maintaining exposure to a familiar tangible asset.
In a balanced asset allocation, PAXG can represent between 5% and 20% of a crypto portfolio, depending on your risk profile. It combines well with more speculative cryptocurrencies like Bitcoin or Ethereum, stablecoins backed by the dollar, and tokens linked to promising DeFi projects.
💡 For investors looking to gain exposure to gold via blockchain, PAXG currently represents the most mature and secure solution. We recommend a progressive investment approach, taking advantage of the token’s divisibility to build a position for the long term.
Caméléon de la rédaction et experte SEO, Maholy Ny Voary a découvert le monde des cryptomonnaies et du Web3 en 2021. Constamment à l’affût des nouveautés, elle continue de se former pour créer des contenus engageants qui aident véritablement les internautes.
PAX Gold (PAXG) is a crypto token backed by physical gold, issued by Paxos Trust Company. Each PAXG token represents legal ownership of one fine troy ounce of gold (approximately 31.1 grams), stored in secure vaults in London. It offers a way to invest in real gold without the logistical burden of physical storage, while benefiting from the flexibility and divisibility of cryptocurrencies.
Paxos, the issuer of PAX Gold, generates revenue primarily in two ways: transaction fees of 0.02% charged on PAXG token transfers (excluding Ethereum gas fees), and creation/redemption fees when users convert dollars to PAXG or vice versa. Unlike gold ETFs, which charge annual management fees, Paxos does not impose recurring fees on holding PAXG, which can represent significant savings for long-term investors.
PAX Gold is available on several major exchange platforms. For French-speaking users, Bitget offers an optimal experience with a French interface and multiple trading pairs, including PAXG/EUR. Other popular options include Binance, Weex, and Bitunix. For users who prefer decentralized exchanges, PAXG is also available on Uniswap and SushiSwap. Before choosing a platform, make sure to compare fees, liquidity, and deposit/withdrawal options available in your region.
As of the time of writing this article (April 2025), the circulating supply of PAX Gold is approximately 221,950 PAXG tokens. Each token represents one troy ounce of gold, which equates to about 6.9 tons of physical gold. Unlike many cryptocurrencies, the supply of PAXG is not capped but elastic: it increases when Paxos acquires more physical gold and decreases when users convert their tokens into physical gold or fiat currency.
Predictions for the price of PAX Gold in 2030 vary significantly, ranging from $4,000 to $7,000 per token. These estimates are primarily based on projections of the price of physical gold, as PAXG closely follows this value. Factors influencing this evolution include global monetary policies, inflation, geopolitical tensions, and the evolving industrial demand for gold. The most optimistic analysts foresee scenarios where gold could reach $10,000 per ounce by 2030 in the event of a major financial crisis, while more conservative estimates anticipate a more moderate rise to $4,000–$5,000.
Yes, but only starting from 430 PAXG (approximately 400 ounces). You need to go through Paxos, which handles the delivery or availability of the gold. This option is mainly aimed at large investors. For smaller quantities, it’s better to sell your tokens and buy gold locally.
No. XAU/USD simply reflects the price of gold on the markets (without owning the gold). PAXG, on the other hand, represents one actual ounce of gold. The price is similar, but PAXG grants ownership rights to the gold, unlike XAU/USD.
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