PAXG: Everything You Need to Know About the Gold-Backed Cryptocurrency

PAXG: Everything You Need to Know

PAXG is a digital token that represents physical gold stored in a vault, each token representing one troy ounce of a 400 oz London Good Delivery gold bar. It is built on the Ethereum blockchain and issued by Paxos Trust Company, a regulated financial institution and custodian of the physical gold. PAXG was launched in September 2019 by the creators of Paxos Standard (PAX), a stablecoin pegged to the US dollar. The main goal behind PAXG is to make gold more accessible, liquid, and divisible, as the physical commodity is not easily tradable or transportable. This is why Paxos Trust Company decided to create a cryptocurrency entirely backed by gold. According to the official whitepaper, PAXG was created to allow investors to buy indefinitely small amounts of gold through the cryptocurrency, thus virtually eliminating minimum buy limits for the commodity.

How does PAXG work?

PAXG works as a digital token that is fully backed by and redeemable for physical gold. Each PAXG token is backed by one fine troy ounce of gold, stored in LBMA vaults in London. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company. The allocated gold that backs PAXG is audited monthly by a third-party firm and the reports are publicly available. Paxos Trust Company also provides a lookup tool that allows users to check the serial number and information about their gold.

PAXG can be bought and sold on various platforms, such as Paxos.com, crypto exchanges, wallets, lending platforms, and more. PAXG can also be transferred peer-to-peer on the Ethereum network, with near-instantaneous settlement and low transaction fees. PAXG holders can also earn rewards by staking or farming PAXG tokens or NFTs on platforms such as ApeSwap or ApeGames6.

PAXG is also redeemable for physical gold or fiat currency at any time. Institutional customers can redeem PAXG for unallocated Loco London Gold or LBMA-accredited Good Delivery gold bullion bars. Individual customers can redeem PAXG for USD at current gold market prices on Paxos.com.

Who are the team behind PAXG?

PAXG is issued by Paxos Trust Company, a New York State-chartered trust company and custodian regulated by the New York State Department of Financial Services (NYDFS). Paxos Trust Company was founded in 2012 by Charles Cascarilla and Richmond Teo as itBit, a bitcoin exchange platform. In 2015, itBit became the first company to receive a trust charter from the NYDFS, allowing it to operate as a regulated financial institution. In 2016, itBit rebranded to Paxos and expanded its services to include blockchain-based settlement solutions, stablecoins, and tokenized assets.

The core team behind Paxos Trust Company and PAXG consists of:

Charles Cascarilla, co-founder and CEO. He has over 15 years of experience in capital management and fintech. He is also a co-founder of Cedar Hill Capital Partners and Liberty City Ventures.

Richmond Teo, co-founder and Asia CEO. He has over 20 years of experience in banking and finance. He is also a co-founder of Cedar Hill Capital Partners and Liberty City Ventures.

Andrew Chang, COO. He has over 15 years of experience in operations and product management. He previously worked at Google, McKinsey & Company, and Canaan Partners.

Walter Hessert, Chief Business Officer. He has over 10 years of experience in business development and strategy. He previously worked at NYSE Euronext, Liquidnet, and Merrill Lynch.

Dorothy Chang, Chief Compliance Officer. She has over 15 years of experience in compliance and risk management. She previously worked at Goldman Sachs, Morgan Stanley, and Citigroup.

What are its use cases?

PAXG has various use cases within and outside the Paxos ecosystem. Within the ecosystem,

PAXG can be used to:

Own investment-grade physical gold with all the benefits of the blockchain, such as security, liquidity, divisibility, and transparency.

Trade gold with other cryptocurrencies or fiat currencies on various platforms, such as Paxos.com, crypto exchanges, wallets, lending platforms, etc.

Earn rewards by staking or farming PAXG tokens or NFTs on platforms such as ApeSwap or ApeGames.

Redeem PAXG for physical gold or fiat currency at any time.

Outside the ecosystem,

PAXG can be used to:

Hedge against inflation or currency devaluation, as gold is a scarce and stable asset that preserves its value over time.

Diversify one’s portfolio, as gold has a low correlation with other asset classes and can reduce volatility and risk.

Support other projects or causes that accept PAXG donations or payments.

Conclusion

PAXG is a digital token that represents physical gold stored in a vault, each token representing one troy ounce of a 400 oz London Good Delivery gold bar. It is issued by Paxos Trust Company, a regulated financial institution and custodian of the physical gold. PAXG offers investors a cost-effective, secure, and convenient way to own investment-grade physical gold with all the benefits of the blockchain. PAXG can be bought, sold, transferred, and redeemed on various platforms, as well as used to earn rewards, hedge against inflation, diversify one’s portfolio, and support other projects or causes. With its unique value proposition and strong backing, PAXG has the potential to become one of the leading tokens in the crypto space.