PAX Gold

PAX Gold (PAXG) is an ERC-20 token representing physical gold bars held in Paxos Trust Company vaults. Each token equals one fine troy ounce of allocated, London Good Delivery standard gold. The token operates on Ethereum, enabling on-chain settlement and transfer of gold ownership without custody intermediaries. Token holders can redeem for physical gold or request allocated bar certificates, creating a bridge between traditional bullion markets and blockchain infrastructure.

Traders monitor PAXG primarily as a liquidity mechanism between crypto and traditional commodity markets. It functions as a hedge instrument within portfolio construction, with price tracking closely correlated to spot gold while trading with the efficiency and settlement speed of tokenized assets. The token's supply adjusts directly with vault holdings, eliminating inflationary mechanics common to other cryptoassets. Its relative stability and institutional-grade backing make it relevant for analyzing how crypto markets price and settle commodity exposure, particularly during volatility spikes across equities and currencies.