Question: What exactly backs 1 PAXG?

Answer: 1 PAXG corresponds to one fine troy ounce of physical gold from LBMA-certified London Good Delivery bars, stored in Brink’s vaults (per issuer/explorer descriptions).

Question: Where is the gold stored that sits behind PAXG?

Answer: The backing gold is stored in professional London vault facilities (often described as Brink’s/London vaults in project materials).

Question: Can I verify which gold is “linked” to my tokens?

Answer: Yes. Paxos provides a lookup tool: by wallet address you can view details of the allocated gold (serial number, specifications, etc.).

Question: Can PAXG be redeemed for physical gold?

Answer: Yes, via Paxos procedures: redemption into a physical bar is possible, but a large minimum is required for a London Good Delivery bar (roughly ~430 PAXG plus fees), and delivery/movement is limited (per Paxos guidance, only to vaults in the UK).

What is PAX Gold (PAXG)

Tokenised gold by Paxos: 1 PAXG represents 1 troy ounce of investment-grade gold, with the convenience of holding and transferring it on the Ethereum blockchain.

Launch 05.09.2019 Ethereum (ERC-20)

Who created it

Paxos Trust Company (Paxos); Paxos founders: Charles Cascarilla, Rich Teo, Emil Woods.

Why it was created

To provide access to owning investment gold as a digital asset: fractional, quickly transferable, and potentially integrable into crypto infrastructure (exchanges/DeFi).

How it’s used

Long-term store of value in gold without physical delivery
Hedging crypto-market volatility via gold exposure
Fast transfers of “digital gold” between wallets/counterparties
Trading PAXG on exchanges (e.g., against USDT/USDC)
Collateral in DeFi and lending services (where supported)
Arbitrage/portfolio rebalancing between cryptoassets and gold

Risks

Gold price risk: if gold falls, PAXG’s value falls too (it is not a “stablecoin”).
Spot deviation risk: on exchanges, PAXG may trade at a premium/discount to gold spot due to liquidity, fees, and supply/demand.
Counterparty risk (issuer/custodian): you rely on how Paxos Trust Company holds/accounts for the backing gold and meets its obligations.
Regulatory risk at the issuer level: regulators may impose requirements/restrictions (including compliance costs, directives, possible product limitations). In 2025, the New York State Department of Financial Services reached an agreement/settlement with Paxos on AML/supervisory matters.
Freeze/seizure risk: PAXG terms explicitly allow freezing access to tokens/backing gold under legal requirements.

FAQ

Question: What exactly backs 1 PAXG?: Answer: 1 PAXG corresponds to one fine troy ounce of physical gold from LBMA-certified London Good Delivery bars, stored in Brink’s vaults (per issuer/explorer descriptions).
Question: Where is the gold stored that sits behind PAXG?: Answer: The backing gold is stored in professional London vault facilities (often described as Brink’s/London vaults in project materials).
Question: Can I verify which gold is “linked” to my tokens?: Answer: Yes. Paxos provides a lookup tool: by wallet address you can view details of the allocated gold (serial number, specifications, etc.).
Question: Can PAXG be redeemed for physical gold?: Answer: Yes, via Paxos procedures: redemption into a physical bar is possible, but a large minimum is required for a London Good Delivery bar (roughly ~430 PAXG plus fees), and delivery/movement is limited (per Paxos guidance, only to vaults in the UK).