In a world where digital assets are redefining the way we invest, $PAXG (PAX Gold) stands out as a unique opportunity for investors to own physical gold in a digital format. Backed 1:1 by fine troy ounces of gold stored securely in the vaults of the London Bullion Market Association (LBMA), PAX Gold offers a cost-effective, secure, and innovative way to gain exposure to one of the world’s most trusted assets—gold. This article provides an in-depth look at $PAXG, covering its features, advantages, tokenomics, market performance, team background, fundraising milestones, and more.

$PAXG (PAX Gold) is revolutionizing the way investors access and own physical gold. By combining the stability of a tangible asset with the efficiency and flexibility of blockchain technology, $PAXG offers a unique solution in the modern investment landscape. With every token fully backed by one fine troy ounce of gold stored in LBMA-accredited vaults, investors can enjoy the benefits of physical gold ownership—legal ownership, divisibility, and liquidity—without the traditional drawbacks such as high storage fees and slow settlement times.

Supported by the robust infrastructure of Paxos and led by industry veteran Charles Cascarilla, $PAXG has attracted significant investment through multiple fundraising rounds, positioning it as a secure, cost-effective, and innovative asset for investors around the world. As global markets continue to navigate economic uncertainties, $PAXG provides a reliable hedge, allowing investors to diversify their portfolios and participate in the digital asset revolution.

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What Is $PAXG?

PAX Gold ($PAXG) is a digital token that represents one fine troy ounce of gold. Each token is backed by physical gold securely stored in LBMA-accredited vaults in London. By bridging the gap between traditional asset ownership and blockchain technology, $PAXG provides investors with all the benefits of owning physical gold—divisibility, fungibility, and ease of transfer—while eliminating many of the logistical challenges and high costs typically associated with physical gold ownership.

Key Features

• Asset-Backed Security: Every $PAXG token is backed by one fine troy ounce of gold, ensuring that the token’s value is intrinsically linked to the real-time market value of physical gold.

• Cost-Effective Ownership: Compared to other gold tokens, gold ETFs, or LBMA 400 t oz bars, PAX Gold offers a lower cost structure with a low minimum purchase amount and zero storage fees.

• Regulated and Secure: The physical gold backing $PAXG is stored in LBMA vaults and audited monthly. Paxos, the custodian of this gold, is regulated by the New York State Department of Financial Services, providing a high level of security and trust.

• No Settlement Risk: Unlike traditional gold ETFs or physical gold purchases that follow T+2 settlement cycles, purchasing $PAXG is nearly instantaneous and free from settlement or credit risk.

• Redeemability: $PAXG is the only gold token that can be redeemed for LBMA-accredited Good Delivery gold bullion bars. Institutional investors can also redeem for unallocated Loco London Gold. Moreover, holders can convert their tokens back into USD at current market prices anytime.

How Does $PAXG Work?

The mechanism behind $PAXG is simple yet powerful. Each token is issued on the Ethereum blockchain as an ERC-20 token, which means it inherits the benefits of blockchain technology such as transparency, divisibility (up to 18 decimal places), and ease of transfer. Investors who own $PAXG essentially own a claim on the physical gold held by Paxos Trust Company. This innovative structure allows for fractional ownership—enabling even small investors to gain exposure to gold. In fact, if you purchase $PAXG directly from Paxos.com, the minimum purchase is 0.01 PAXG, roughly equating to $15.

Allocated vs. Unallocated Gold

When purchasing gold through $PAXG, investors have two options:

• Allocated Gold: This means you have direct ownership of specific gold bars held on your behalf, complete with unique serial numbers, purity, and weight.

• Unallocated Gold: Here, you have a general entitlement to a certain amount of gold, similar to a bank deposit. While you do not own a specific gold bar, you maintain a claim to a specified quantity of gold that the institution promises to deliver.

This flexibility is one of the key benefits of having physical assets on the blockchain—combining the best aspects of both digital and physical asset ownership.

The Benefits of $PAXG

1. Cost-Efficiency

PAX Gold offers a significantly lower cost structure than traditional methods of gold ownership. Investors can bypass the high premiums and storage fees often associated with physical gold bars and gold ETFs. With minimal fees for creation and destruction of tokens when using Paxos’ wallet services—and no storage fees at all—investors enjoy a streamlined, cost-effective investment experience.

2. Security and Regulation

Security is paramount when it comes to owning precious metals. The gold backing $PAXG is stored in LBMA vaults in London, and its custody is managed by Paxos Trust Company—a regulated institution under the oversight of the New York State Department of Financial Services. Regular monthly audits ensure that the gold reserves are accurately maintained and that every token is fully backed, providing peace of mind to investors.

3. Instant Settlement and Flexibility

Traditional gold transactions can be slow and cumbersome, often requiring a settlement period of T+2. In contrast, purchasing and transferring $PAXG occurs almost instantaneously on the blockchain, reducing counterparty risk and enhancing liquidity. Furthermore, investors have the flexibility to convert $PAXG back to USD, allocated gold, or unallocated gold, ensuring that they can adapt to changing market conditions.

4. Fractional Ownership

The divisibility of $PAXG allows investors to own fractions of a troy ounce of gold. This feature lowers the entry barrier and makes gold ownership accessible to a broader range of investors—enabling even those with limited capital to benefit from the stability and security of gold.

5. Integration in the Crypto Ecosystem

$PAXG is widely available on various crypto-asset exchanges, wallets, and lending platforms. This interoperability allows investors to use $PAXG as collateral, trade it in DeFi protocols, or simply hold it as a stable asset in a volatile crypto market. With over 39 listed exchanges and more than 38,480 holding addresses, $PAXG enjoys a robust presence within the crypto ecosystem.

Market Performance and Token Metrics

The performance metrics for $PAXG further underscore its stability and reliability:

• Market Cap: $650.7 million

• Circulating Supply: 214.8K PAXG tokens

• Release Date: September 26, 2019

• All-Time High: $3,090.1 (recorded on March 21, 2025)

• All-Time Low: $1,399.64 (recorded on March 24, 2025)

• Max Supply: 2.10 billion EOS tokens (Note: For $PAXG, each token corresponds to one troy ounce of gold; the concept of “max supply” here refers to the potential upper limit based on gold reserves.)

• Fully Diluted Market Cap: $650.7 million (implying a 100% backing of circulating tokens)

• Market Cap/Total Circulating Ratio: 100.00%

• Number of Listed Exchanges: 39

• Core Algorithm: ERC-20

• Market Sentiment: Positive

These metrics illustrate that $PAXG is a well-established asset within the crypto market, offering stability even in volatile conditions. The 100% market cap/total circulating ratio indicates that every token in circulation is fully backed by physical gold—a critical factor for investor confidence.

All data is valid as at the time of writing 25th March 2025

PAXG Fundraising and Strategic Partnerships

PAX Gold is developed and managed by Paxos, a regulated blockchain technology company led by experienced financial professionals. Charles Cascarilla, the co-founder and CEO of Paxos, brings a wealth of experience from his career in traditional finance, having worked at Bank of America and Goldman Sachs, among others. His leadership, combined with a strong team, has helped position Paxos as a pioneer in asset tokenization.

Fundraising has played a significant role in the development of $PAXG:

• On December 7, 2020, Paxos secured $142 million in Series C funding from investors including Declaration Partners, Liberty City Ventures, PayPal Ventures, RRE Ventures, Senator Investment Group, RIT Capital Partners, Ken Moelis, and Alua Capital.

• On April 30, 2021, Paxos secured an additional $300 million in Series D funding, valued at $2.4 billion, with investors such as Oak HC/FT, Coinbase Ventures, Liberty City Ventures, PayPal Ventures, Founders Fund, Declaration Partners, Senator Investment Group, WestCap, Mithril Capital, and Bank of America.

These significant fundraising rounds have provided Paxos with the capital necessary to innovate and expand, ensuring that $PAXG remains a cost-effective and secure way to own physical gold.

The Benefits of Combining Physical Gold with Blockchain Technology

One of the most compelling aspects of $PAXG is how it combines the benefits of physical gold ownership with the advantages of blockchain technology:

• Legal Ownership: Unlike traditional digital assets, $PAXG represents legal ownership of a specific amount of physical gold. This gives investors tangible backing, which is especially valuable during times of economic uncertainty.

• Divisibility and Fungibility: While physical gold can be cumbersome to divide and trade, $PAXG offers the ease and flexibility of a digital asset. Investors can own fractions of a token, making it more accessible and easier to manage.

• Enhanced Liquidity: The ability to trade $PAXG on major exchanges and use it within DeFi protocols means that investors can quickly access liquidity without the delays typically associated with physical gold transactions.

• Reduced Costs: With no storage fees and lower transaction costs compared to gold ETFs and physical gold bars, $PAXG provides a cost-efficient solution for investors seeking exposure to gold.

Fees and Transaction Efficiency

Paxos maintains a competitive fee structure for $PAXG. When purchasing or selling $PAXG directly through the Paxos platform (via the wallet dashboard or PAX Gold pages), small fees are applied to cover the creation and destruction of tokens. Notably, these fees do not apply when trading on the exchange order book, further enhancing the cost efficiency of using $PAXG.

The near instantaneous settlement of $PAXG transactions—compared to the T+2 settlement cycle of traditional gold ETFs—reduces counterparty risk and enhances the overall liquidity of the asset. This efficiency is crucial for investors who value speed and reliability in their transactions.

Use Cases and Real-World Applications

$PAXG is not just a speculative asset—it serves as a practical tool for investors seeking a stable store of value and a hedge against economic volatility. Some of its key use cases include:

• Portfolio Diversification: Investors can add $PAXG to their portfolios as a non-correlated asset, providing stability during market downturns.

• Collateral in DeFi: $PAXG can be used as collateral on various DeFi platforms, enabling investors to borrow funds without selling their physical gold exposure.

• Instant Liquidity: With the ability to convert $PAXG to USD, allocated gold, or unallocated gold at any time, investors can quickly access liquidity when needed.

• Fractional Ownership: The divisibility of $PAXG makes it accessible to a wider range of investors, allowing even small investors to gain exposure to the gold market.

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How to Buy $PAXG On Gate.io

Step 1: Register for an Account

Start by visiting Gate.io and clicking on “Sign Up” to create your account. Enter your email address, create a secure password, and follow the registration instructions.

Step 2: Complete the KYC Verification

To ensure your account is secure and compliant with global regulations, complete the Know Your Customer (KYC) process. This usually involves submitting a government-issued ID and possibly a selfie. Proper verification increases your account’s security and unlocks full trading features.

Step 3: Deposit Funds

Once your account is verified, deposit funds into your Gate.io wallet You can use various methods, such as bank transfers, credit or debit cards, or even other cryptocurrencies. Make sure you deposit enough funds to cover your desired investment as well as any applicable fees.

Step 4: Locate $PAXG

In the trading section of the platform, use the search bar to find $PAXG. Gate.io typically lists $PAXG with various trading pairs, such as $PAXG/USDT. Review the current market price and available order options before proceeding.

Step 5: Place Your Order

Decide whether to place a market order or a limit order. A market order will execute immediately at the current price, while a limit order lets you set your own price. Enter the amount of $PAXG you wish to purchase, review the order details carefully, and then confirm the transaction.

Conclusion: The Future of Gold Investment

In summary, $PAXG is more than just a token—it is a gateway to owning gold in a way that is both modern and practical. Whether you are a seasoned investor looking for a stable store of value or a newcomer eager to explore the benefits of blockchain-backed assets, $PAXG offers a compelling investment opportunity that bridges the best of physical and digital worlds.

Embrace the future of gold investment with $PAXG, and discover how this innovative asset can enhance your portfolio, provide instant liquidity, and deliver the security of physical gold through the transformative power of blockchain technology.

Disclaimer: Cryptocurrency investments carry risks. Always conduct thorough research before investing.