What Is PAX Gold (PAXG)?
In today’s crypto market, investors constantly seek new ways to combine the stability of traditional assets with the flexibility of blockchain. So, what is PAX and how does PAX Gold (PAXG) fit into this landscape? PAX originally refers to Paxos Standard, a regulated USD-backed stablecoin, and PAXG extends this model by tokenizing physical gold. As a gold-backed cryptocurrency, PAXG merges the trusted value of gold with on-chain efficiency, making it ideal for airdrop hunters and blockchain enthusiasts alike.
What Is PAX Gold (PAXG)?
PAX Gold (PAXG) is an ERC-20 token issued by Paxos Trust Company, where each token represents one fine troy ounce of a London Good Delivery gold bar stored in professional vaults. Unlike traditional gold investments, PAXG allows fractional ownership, enabling anyone to buy as little as 0.01 PAXG with the same legal title to a specific ounce of gold.
How Does PAX Gold Work?
Token minting on the Ethereum blockchain is strictly backed 1:1 by physical gold deposits. Whenever Paxos acquires a new gold bar, it mints the corresponding number of PAXG tokens; conversely, burning PAXG redeems the equivalent gold or fiat value. All holdings are audited monthly by an independent third party and regulated by the New York State Department of Financial Services, ensuring transparency and trust.
Key Features of PAX Gold
PAX Gold combines the best of physical gold and digital assets through several standout features:
- Asset-Backed Security: Each PAXG token is backed by one ounce of LBMA-certified gold held in insured vaults.
- Fractional Ownership: Investors can purchase and trade fractional quantities of gold, lowering the entry barrier.
- Regulatory Oversight: Paxos operates under a NYDFS Trust Charter, with monthly reserve attestations published on-chain.
- ERC-20 Compatibility: PAXG integrates seamlessly with DeFi protocols, wallets, and exchanges across the Ethereum ecosystem.
Benefits of PAX Gold for Crypto Investors
PAXG offers a range of advantages compared to both conventional gold and pure stablecoins:
- High Liquidity: Trade gold-backed tokens 24/7 on exchanges like Gate without worrying about shipping or storage.
- Cost Efficiency: Avoid high storage and insurance fees associated with physical bullion.
- Transparency: Verify gold reserves on-chain anytime via Paxos’s attestation tool.
- Deflationary Hedge: As a gold-backed token, PAXG can serve as a shield against fiat inflation and crypto market volatility.
How to Buy and Trade PAXG on Gate
Gate supports PAXG spot trading with deep liquidity and competitive fees. To start trading PAX Gold.
- Sign in to your Gate account or register if you’re new.
- Navigate to the PAXG/USDT market on Gate’s Trade page.
- Place a buy order by entering the amount of PAXG you wish to purchase; minimum orders start as low as 0.01 PAXG.
- Confirm the transaction; your PAXG will arrive in your Gate wallet instantly.
Gate began supporting PAX Gold spot trading on March 21, 2025, at 08:00 UTC, ensuring you have uninterrupted access to this gold-backed token.
Conclusion
PAX Gold (PAXG) bridges the gap between traditional gold investment and modern blockchain innovation. By answering the question “what is PAX?” and demonstrating how Paxos extends trust from digital dollars to physical gold, PAXG emerges as a compelling, transparent, and accessible asset for crypto investors. Ready to add real-asset exposure to your portfolio? Trade PAXG on Gate today and secure your piece of digital gold.
