{"id":2567,"date":"2025-04-07T14:36:53","date_gmt":"2025-04-07T13:36:53","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=2567"},"modified":"2025-04-07T14:36:55","modified_gmt":"2025-04-07T13:36:55","slug":"pax-gold-paxg","status":"publish","type":"post","link":"https:\/\/preprod.investx.fr\/en\/learn\/crypto\/pax-gold\/","title":{"rendered":"PAX Gold (PAXG) : What is it and how does it work ?"},"content":{"rendered":"\n

What is PAX Gold (PAXG) ?<\/h2>\n\n\n
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\"Pax<\/figure>\n<\/div>\n\n\n

PAX Gold<\/strong> is a crypto token that represents real ownership of physical gold. Unlike most cryptocurrencies that aren’t backed by anything tangible, each PAXG token is equivalent to exactly one troy ounce of fine gold<\/strong> (approximately 31.1 grams) stored in Brink’s vaults in London.<\/p>\n\n\n\n

Launched in September 2019 by Paxos Trust Company<\/strong>, PAXG was created to solve a fundamental problem: how to make gold investment more accessible, divisible, and easy to transfer, while maintaining the intrinsic qualities of this precious metal?<\/p>\n\n\n\n

The stored gold meets the London Good Delivery<\/strong> standard, guaranteeing a minimum purity of 99.5%. Each token has a unique serial number corresponding to a specific gold bar, allowing holders to verify their gold’s details through the Paxos website.<\/p>\n\n\n\n

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History and founders of PAX Gold (PAXG)<\/h2>\n\n\n\n

PAX Gold was launched in September 2019, during an economic context marked by growing uncertainties<\/strong>. At that time, trade tensions between the United States and China, recession fears, and accommodative monetary policies from central banks were driving many investors toward traditional safe-haven assets like gold.<\/p>\n\n\n\n

Paxos Trust Company<\/strong>, founded in 2012 under the initial name itBit and rebranded in 2016, is the company behind PAXG. Already known for its Paxos Standard (PAX)<\/strong> stablecoin backed by the US dollar, the company identified an opportunity: combining the age-old appeal of gold with the advantages of blockchain technology.<\/p>\n\n\n\n

The two co-founders, Charles Cascarilla<\/strong> (current CEO) and Rich Teo<\/strong>, bring complementary expertise to the project. Cascarilla, a Harvard graduate with experience at Goldman Sachs and Bank of America, possesses deep knowledge of traditional financial markets and a clear vision for blockchain<\/a><\/strong> technologies.<\/p>\n\n\n\n

What distinguishes Paxos from many crypto companies is its proactive regulatory approach<\/strong>. The company obtained a bank charter from the State of New York and operates under the supervision of the New York State Department of Financial Services (NYDFS), one of the strictest financial regulators in the United States.<\/p>\n\n\n\n

The year 2020, with the COVID-19 crisis, confirmed the relevance of this approach. Faced with global economic uncertainties and massive liquidity injections by central banks, demand for gold exploded, and PAXG benefited from this trend.<\/p>\n\n\n\n

How does PAX Gold (PAXG) work ?<\/h2>\n\n\n
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\"How<\/figure>\n<\/div>\n\n\n

PAX Gold’s functioning is based on a simple but ingenious mechanism. Paxos<\/strong> purchases physical gold compliant with the London Good Delivery standard and stores it in secure vaults. For each ounce of gold acquired, a PAXG token is created on the Ethereum blockchain<\/strong> as an ERC-20<\/strong> token.<\/p>\n\n\n\n

When you buy PAXG, you become the legal owner of the corresponding physical gold<\/strong>. This isn’t just a promise or a derivative: it’s a real ownership right, guaranteed by legal contracts and the strict regulation that Paxos adheres to.<\/p>\n\n\n\n

Traceability<\/strong> is at the core of the system. Each PAXG token is linked to a specific gold bar<\/strong> via a unique serial number. By entering your Ethereum address on the Paxos website, you can see the precise details of the gold you own: weight, purity, refiner, serial number, and storage location.<\/p>\n\n\n\n

To ensure transparency<\/strong>, Paxos collaborates with independent auditors who verify monthly that the amount of stored gold exactly matches the number of tokens in circulation. These audit reports are publicly accessible.<\/p>\n\n\n\n

If you wish to convert your tokens into physical gold, it’s possible under certain conditions (minimum of 430 tokens, equivalent to a standard bar). But the main benefit of PAXG lies precisely in being able to invest in gold<\/strong> without having to manage the logistical constraints of physical metal.<\/p>\n\n\n\n

Tokenomics and Market Capitalization of PAX Gold (PAXG)<\/h2>\n\n\n\n

Here are the key data regarding PAX Gold’s tokenomics :<\/p>\n\n\n\n