What is PAX Gold (PAXG)?

PAX Gold is a crypto token that represents ownership of real, physical gold. One PAXG equals one fine troy ounce of gold stored in professional vaults in London. It’s issued by Paxos and runs on Ethereum, which means gold can move like any ERC-20 token. Simple idea, but executed with a lot of regulatory discipline—and that’s kind of the point.

How does PAXG actually stay backed by gold?

Tokens are minted only when physical gold is placed into custody and burned when gold is redeemed. No algorithm, no partial-reserve tricks. Worth noting: supply isn’t averaged, delayed, or quietly “managed.” It just mirrors the gold sitting in vaults, with regular third-party checks making sure everything lines up.

Does PAXG have normal crypto tokenomics?

Not really, and that’s intentional. There’s no max supply, no emissions, and no inflation curve to model. Supply grows or shrinks only when demand for gold changes. There’s also no team allocation or incentive layer. Every token exists because someone paid full value for physical gold—nothing more exotic than that.

Are there vesting schedules or unlock risks?

No vesting, no cliffs, no unlock calendar to keep an eye on. Since PAXG represents allocated gold, there’s nothing scheduled to hit the market later. Tokens appear when gold enters custody and disappear when it leaves. If you’re used to managing unlock risk in crypto, this removes that whole category entirely.

Who issues PAXG, and why does that matter?

PAXG is issued by Paxos Trust Company, a regulated financial institution founded in 2012. Paxos is backed by large institutional investors and operates under U.S. trust regulation. That regulatory footing matters—it’s a big reason PAXG is treated differently from most crypto coins, especially by institutions that care about compliance first.

Where does PAXG actually trade?

PAXG trades mainly against USDT and USD on large centralized exchanges, with smaller but steady liquidity on Ethereum DEXs like Uniswap v3. One thing that stands out is how much activity happens outside pure spot markets. That alone tells you something about how traders tend to use this token.

What do people actually use PAXG for?

At its core, it’s about holding gold in token form. Beyond that, PAXG shows up as DeFi collateral, in cross-border settlement flows, and as a hedge when crypto or fiat markets get shaky. It’s less about chasing upside and more about keeping part of a portfolio anchored.

What risks should holders keep in mind?

There’s reliance on regulated custody and compliance, including the ability to freeze tokens under legal orders. Ethereum gas fees can be inconvenient during congestion. And of course, PAXG moves with gold—if gold drops, so does the token. Still, compared to most crypto assets, the risks here are unusually clear and predictable.