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PAX Gold
Pax Gold
The safest way to own investment-grade physical gold
Seamlessly offer PAXG, now with zero on-chain transfer fees
A digital token, backed by physical gold
PAXG offers investors a cost-effective way to own investment-grade physical gold with all the benefits of the blockchain. Each Pax Gold (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.
Cost-efficient
Paxos offers PAXG at a lower cost structure than that of other gold tokens, gold ETFs and LBMA 400 t oz bars, with a low minimum purchase amount and zero storage fees.
Secure and regulated
The allocated gold that backs PAXG is custodied in LBMA vaults and audited monthly. Paxos is a trust company and custodian regulated by the New York State Department of Financial Services.
No settlement risk
Purchasing PAXG is free from settlement and credit risk, with near instantaneous settlement in addition to T+2 (versus only T+2 for Gold ETFs and LBMA bars).
Redeemable
PAXG is the only gold token you can redeem for LBMA-accredited Good Delivery gold bullion bars. Institutional customers can also redeem for unallocated Loco London Gold. Redeem for USD at current gold market prices at any time.
Learn more about PAXG
PAXG Onesheet
Download our onesheet for institutional investors to learn more about Pax Gold
PAXG White Paper
Learn more about Pax Gold in our white paper
This Lookup tool is for PAXG held in on-chain Ethereum wallets (not custodial exchanges/wallets). For PAXG held on Paxos, login to view your allocation report.
Why Pax Gold?
 |
Major Gold ETFs | Gold Futures (COMEX) | LBMA 400 t oz gold bar | Unallocated Gold | |
|---|---|---|---|---|---|
| Custody Fees | NO FEE | 19-40 bps per annum | N/A | 5-25 bps per annum | 0-10 bps per annum |
| Minimum Purchase | 0.01 t oz ~$20 | 1 share (currently $200) | 1 contract (100 t oz = ~$200K) | Typically ~$800K minimum per bar | Variable |
| Time to Settle | INSTANT* | T+2 days | Expiration date | T+2 | T+2 |
| Allocated | ✔︎ | Variable | ✗︎ | ✔︎ | ✗︎ |
| Instantly Redeemable for Physical | ✔︎ | ✗︎ | ✗︎ | ✔︎ | ✗︎ |
| Regulated | NYDFS | SEC and equivalents | ✗︎ | ✗︎ | ✗︎ |
* Typical on-chain transactions for PAX Gold moving on Ethereum settle near instantly. When you create PAXG on the Paxos platform, tokens will typically be minted and delivered the same day (some larger transactions will settle the next business day).
Why Pax Gold?
| Pax Gold | Major Gold ETFS | Gold Futures (COMEX) | LBMA 400 t oz gold bar | Unallocated Gold | |
|---|---|---|---|---|---|
| Custody Fees | No Fee | 19-40 bps per annum | N/A | 5-25 bps per annum | 0-10 bps per annum |
| Minimum Purchase | 0.01 t oz ~$20 | 1 share (currently $200) | 1 contract (100 t oz = ~$200K) | Typically ~$800K minimum per bar | Variable |
| Time to Settle | Instant* | T+2 days | Expiration date | T+2 | T+2 |
| Allocated |  |
Variable |  |
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| Instantly Redeemable for Physical | |
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| Regulated | NYDFS | SEC & equivalents | CFTC | |
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*Typical on-chain transactions for Pax Gold moving on Ethereum settle near instantly. When you create PAXG on the Paxos platform, tokens will typically be minted and delivered the same day (some larger transactions will settle the next business day).
The Pax Gold Ecosystem
Pax Gold is now handled by over 50 vaults, exchanges, wallets, lending platforms and more.
Contact Us
Are you an institutional investor seeking to purchase PAXG? Please drop us a line below.
FAQs
Review frequently asked questions about Pax Gold (PAXG)
Pax Gold (PAXG) is an asset-backed token where one token represents one fine troy ounce of a London Good Delivery gold bar, stored in professional vault facilities. Anyone who owns PAXG has ownership rights to that gold under the custody of Paxos Trust Company. Since PAXG represents physical gold, its value is tied directly to the real-time market value of that physical gold. PAXG gives customers the benefits of actual physical ownership of specific gold bars with the speed and mobility of a digital asset. Customers are able to have fractional ownership of physical bars. On the Paxos platform, customers can convert their tokens to allocated gold, unallocated gold, or fiat currency (and vice versa) quickly and efficiently, reducing their exposure to settlement risk. PAXG is also available for trading. PAXG will also be available on other crypto-asset exchanges, wallets, lending platforms and elsewhere within the crypto ecosystem. At any time, PAXG holders can lookup the serial number, value and physical characteristics of their vaulted gold just by entering their Ethereum wallet address on the PAXG lookup tool on Paxos.com/paxgold.
Physical gold on the blockchain has the advantages of representing legal ownership of physical allocated gold, but does not have the drawbacks of limited transportability or high storage costs usually associated with it. Instead, it has the divisibility, fungibility and tradability of any digital asset like bitcoin. In other words, the best of physical and digital assets at the same time!
The amount of gold representing the total supply of PAXG is a 1:1 ratio – one fine troy ounce of gold equals one PAXG token. The total supply of gold representing PAXG changes continuously as the market capitalization of PAXG increases and decreases.
Yes. It is possible to own tiny fractions of a token, which are divisible out to 18 decimal points. If you purchase PAXG directly from Paxos.com, the minimum purchase is 0.01 PAXG (1% of a PAXG token – or roughly $15).
When a customer trades for allocated gold bars, they receive ownership rights to specific gold bars that are held in a precious metal dealer’s vault on the customer’s behalf. Allocated gold is identifiable with a unique serial number, purity, and weighting for each bar.
When a customer trades for unallocated gold, they do not have actual ownership over specific gold bars; instead, they have a general entitlement to a certain quantity of gold that an institution promises to deliver. This is hypothetical gold and is a liability of the institution that one has a claim against. This is similar to the way a traditional bank operates – customers don’t own specific notes, but rather they have a credit that can be paid out upon request.
Storage fees: Paxos does not charge gold storage fees to its customers at this time.
Creation and Destruction fees: Whenever you buy or sell PAXG from your Paxos account (on either the wallet dashboard or PAX Gold pages), Paxos charges small fees to process both the creation and destruction of PAXG tokens (see fee schedule below). This includes all sales or conversions of PAX Gold to or from USD, gold bars or unallocated gold.
These fees do not apply when purchasing & selling tokens through our exchange order book or anywhere else outside the Paxos wallet. If you wish to purchase or sell PAXG through our exchange order book your trades may be subject to applicable trading fees.
Creation & Destruction Fee Schedule:
| Amount of Pax Gold Tokens | Estimated USD* (based on August 2020 market value of roughly $2k/oz) | Creation & Destruction Fee applied whenever PAXG is converted or redeemed for USD, PAX USD, unallocated gold or gold bars |
| 0.03** < 2 | $60 – $4K | 0.02 PAXG minimum fee |
| 2 < 25 | $4K – $50K | 1.000% |
| 25 < 50 | $50K – $100k | 0.750% |
| 50 < 75 | $100K – $150K | 0.500% |
| 75 < 200 | $150K – $400K | 0.250% |
| 200 < 800 | $400k+ | 0.150% |
| 800+ | $1600k+ | 0.1250% |
*Fee percentage is calculated based on PAXG tokens; USD is included in this chart as an estimate for reference only
**The minimum purchase amount is 0.03 PAXG which includes PAXG fees