PAX Gold
PAXGPAXG is a gold-backed ERC-20 token by Paxos. Each token represents one fine troy ounce of gold stored in LBMA-accredited vaults. Regulated and audited monthly. PAXG does not natively earn yield; returns come purely from gold price appreciation.
PAXG is a tokenized claim on London Good Delivery gold bars vaulted at Brink's, so price tracks spot gold one-for-one minus the small Paxos custody fee. The same drivers that move physical gold (real rates, USD, central bank flow — see KAU) move PAXG. The differentiator vs other tokenized gold is regulatory: Paxos is NYDFS-chartered, which makes PAXG the only mainstream gold token that institutional US allocators can hold without bespoke compliance work. That regulatory wrapper is worth a small premium in normal conditions and a much larger premium during periods of elevated counterparty/jurisdictional concern.
The structural gold tailwind from central bank buying applies to PAXG identically to physical and to other tokenized-gold products. The interesting PAXG-specific question is whether US institutional allocation to tokenized gold reaches an inflection point in the current cycle. NYDFS coverage is the gating factor for that flow — if it materialises, PAXG captures an outsized share because alternatives like XAUT remain offshore-only for compliance purposes. Watch the public balance sheets of crypto-native asset managers and treasury programs for gold allocation — incremental adds there are early signals.
- ›All KAU watchlist items (real rates, CB flow, ETF flows, DXY)
- ›PAXG market cap relative to XAUT — share gain = institutional rotation
- ›Crypto treasury programs disclosing gold allocations (MicroStrategy-style)
- ›Stablecoin issuer reserve composition reports — any rotating cash into PAXG
- ×Loss of NYDFS standing (would collapse the regulatory premium)
- ×Material PAXG-specific operational incident (vault, custody, redemption)
- ×A regulated alternative wrapper from a larger institutional issuer (e.g. State Street, BNY)
Editorial macro context · refreshed each methodology cycle · not investment advice
Price data from CoinGecko. Not financial advice.
Risk assessment is indicative. Conduct thorough due diligence before investing.
Calculations are indicative. Actual yields may vary.