PAX Gold (PAXG)

Over View PAX Gold (PAXG)

Paxos Gold (PAXG) is a cryptocurrency that is fully backed by real gold reserves held by Paxos, a for-profit company based in New York. Each PAXG token is equivalent to 1 troy ounce of gold stored in vaults, providing investors with a digital representation of physical gold. The value of PAXG is designed to mirror the price of gold, offering a way for investors to gain exposure to the precious metal via the blockchain.

Paxos developed PAXG as an Ethereum-based token, enabling it to be easily traded for other cryptocurrencies and secured using cryptographic keys. The token is backed by actual gold reserves, with Paxos conducting monthly audits to ensure the supply of PAXG matches its gold holdings. In addition to trading, token holders can redeem their PAXG for gold bullion bars at any time, offering a direct link to the physical asset.

The PAXG token is divisible up to 18 decimal places, which makes it possible to redeem smaller amounts of gold through a network of global gold retailers. Transactions involving PAXG follow the Ethereum blockchain’s smart contract protocols, providing a secure and decentralized method for transferring and exchanging the tokens. In terms of fees, Paxos charges a small fee of about 0.02% for the creation and redemption of PAXG, in addition to standard on-chain transaction fees.

To ensure the integrity and security of the PAXG ecosystem, Paxos monitors all transactions using third-party analytics tools designed to detect fraud or money laundering activities. Regular smart contract audits are also carried out to identify and address any potential vulnerabilities in the code.

Paxos, founded in 2012 by Charles Cascarilla and Rich Teo, specializes in cryptocurrency exchange infrastructure. PAXG was launched in 2019 following the success of Paxos Standard (PAX), a stablecoin backed by U.S. dollars. With its gold-backed foundation, PAXG offers a way for investors to hold a stable store of value while benefiting from the advantages of blockchain technology, such as easy exchange, portability, and tradability.

In summary, PAXG combines the stability of gold with the flexibility and liquidity of cryptocurrency, offering a secure, transparent way to gain exposure to gold prices without the complexities of physical ownership.