Tokenized Gold

Two tokens share the top of our 2026 gold board: Kinesis Gold (KAU) and PAX Gold (PAXG) both score 90 out of 100 on the RWTS Trust Score, ahead of Tether Gold (XAUT) at 82 and Matrixdock XAUm at 81. The tie is the interesting part, because the two get to 90 by opposite routes. KAU takes a full 20 of 20 on verification and only 8 of 15 on redeemability: it proves the metal is there better than anything else we rate, and every route out runs through one company. PAXG inverts that, taking 16 of 20 on verification and 13 of 15 on redeemability. Neither is better in the abstract. Choose the one whose weak dimension you can live with: KAU if proof of allocation matters most and you intend to hold, PAXG if you want the easier exit and NYDFS-regulated scale, XAUT for the longest operating history.

Tokenized gold is physical gold (typically LBMA Good Delivery bars held in audited vaults) represented one-for-one as a blockchain token. Each token entitles the holder to a specific weight of allocated gold, redeemable for either physical delivery or cash settlement depending on the issuer's terms. The token trades like crypto but the underlying asset is the same gold institutional investors have held for centuries.

Kinesis Gold (KAU) and PAX Gold (PAXG) are joint-highest on the RWTS Trust Score, both at 90, ahead of Tether Gold (XAUT) at 82 and Matrixdock XAUm at 81. Both earn full marks on backing, 25 of 25, for allocated one-for-one metal: KAU in 1-gram units across Brink's and Loomis vaults, PAXG per troy ounce in Brink's. They separate on the two dimensions below the headline. KAU is stronger on verification, 20 of 20 against PAXG's 16, reflecting continuously published on-chain circulation. PAXG is stronger on the exit, 13 of 15 against KAU's 8, because KAU redemption and settlement run through a single operator. Size does not enter the score at all: the six dimensions are backing, verification, redeemability, audit, regulatory standing and track record, not how much sits in circulation. Live circulation for KAU, and for its silver counterpart KAG which also scores 90, is published on the Kinesis explorer at explorer.kinesis.money.

Safety depends on four factors RWTS tracks in the Trust Score: who holds the physical gold (vault custodian), how often holdings are independently audited (attestation cadence), whether you can actually redeem the token for physical metal, and the issuer's regulatory standing. Kinesis Gold (KAU) and PAX Gold (PAXG) are joint-highest at 90, KAU using allocated 1-gram units across Brink's and Loomis vaults, PAXG backing 1 token per troy ounce. Tether Gold (XAUT) scores 82 and Matrixdock XAUm 81. All four assets we cover are Tier 1 in the RWTS methodology: physically-backed, audited, and redeemable. Note that a high total does not mean every dimension is high. KAU scores 8 of 15 on redeemability despite an unconditional redemption right, because every route out runs through one company, and that is a real constraint the headline number hides.

PAXG and XAUT both represent 1 troy ounce of LBMA-grade gold but differ on three dimensions: PAXG (Paxos) holds gold in Brink's vaults and is regulated by the NYDFS, with twice-monthly attestations. XAUT (Tether) holds gold in Swiss vaults and publishes quarterly attestations. PAXG's regulatory anchor is stronger (NYDFS oversight); XAUT's track record is longer (Tether has more years operating tokenized commodities). On the RWTS Trust Score, PAXG (90) is clear of XAUT (82), and most of that gap is audit and regulatory rather than backing: both hold real allocated metal. PAXG is also joint-top overall, level with Kinesis Gold (KAU) at 90. Compare the live Trust Scores in the table above.

Most tokenized gold tokens do NOT pay yield natively: PAXG, XAUT, and XAUm all sit at 0% APY because the underlying physical gold itself produces no income. Kinesis Gold (KAU), joint-highest on our gold board at 90, is the exception, paying ~0.45% APY through Kinesis's transaction-velocity yield system (a portion of network transaction fees flows back to holders). If you want yield on gold-collateralized positions, look at lending platforms that accept PAXG as collateral (e.g. some Aave or Morpho vaults).

Yes, but with friction. PAXG holders can redeem for unallocated gold or physical bars (minimum redemption thresholds apply). XAUT redemptions go through Tether Gold's direct redemption process. KAU redemptions ship physical gold from Kinesis's allocated vaults. All redemptions require KYC and have minimums in the $50K-$430K range depending on issuer. For sub-redemption-threshold holdings, you sell the token on-chain for stablecoins or cash equivalent.

No. ETFs trade only during market hours, require a brokerage account, and represent shares in a fund that holds gold, so you don't have a direct claim on a specific weight of allocated metal. Tokenized gold trades 24/7 on-chain, settles in seconds, can move between wallets without intermediaries, and represents a direct (often allocated) claim on physical gold. ETFs are more familiar and tax-advantaged in some jurisdictions; tokenized gold is more flexible operationally and accessible globally.

Every asset gets a Trust Score on a 100-point scale across six dimensions: backing (25 pts) for quality and proof of the physical reserves; verification (20 pts) for attestation and on-chain transparency; redeemability (15 pts) for how easily you can exit; audit (15 pts) for smart-contract and financial audit posture; regulatory (15 pts) for issuer compliance and licensing; and track record (10 pts) for time in market and incident history. Kinesis Gold (KAU) and PAX Gold (PAXG) currently share the top of the gold board at 90. Read the dimensions rather than the total: two assets can reach the same score with opposite strengths, which is exactly what those two do on verification and redeemability. See the full methodology page for the rubric and source data.