PAX Gold

PAX Gold (PAXG) is a digital asset backed by physical gold. Each PAXG token represents one fine troy ounce of a London Good Delivery gold bar stored in secure vault facilities. PAXG token holders have ownership rights to the gold under the custody of Paxos Trust Company. The token's value is directly tied to the real-time market value of the physical gold it represents, offering the benefits of physical gold ownership and a digital asset's efficiency and mobility. PAXG is designed to combine the qualities of traditional gold investment with the advantages of blockchain technology, such as divisibility, fungibility, and traceability, without the high storage costs and limited transportability of physical gold.

• Total Supply

• : The total supply of PAXG tokens is dynamic, changing as the market capitalization fluctuates. Each token is backed by one fine troy ounce of gold, with a 1:1 ratio.

• Divisibility

• : PAXG tokens are divisible up to 18 decimal points, allowing for ownership of fractions of a token.

• Purpose

• : PAXG provides a cost-effective way to invest in investment-grade physical gold, with the added benefits of blockchain technology. It is designed to be a secure and regulated way to own gold, with the ability to redeem for physical gold or USD at market prices.

As of today 25 November 2024, the price of PAX Gold is ₹2,37,037.50 INR, with a 24-hour trading volume of 13937526.8 USD. The market capitalization for PAX Gold is 536472680.93USD. The circulating supply is 197564.49 PAX Gold, with the total supply also being 197564.49 PAX Gold.

• Asset-Backed

• : PAXG is backed by physical gold, providing a tangible asset behind the digital token.

• Regulated

• : Paxos Trust Company is regulated by the New York State Department of Financial Services, adding a layer of security and trust.

• Redeemable

• : Token holders can redeem PAXG for LBMA-accredited Good Delivery gold bullion bars or USD at current gold market prices.

• Cost-Efficient

• : PAXG offers a lower cost structure than other gold tokens and does not incur the high storage costs associated with physical gold.

• Accessibility

• : The token can be purchased in fractional amounts, making gold investment accessible to more investors.

• Market Volatility

• : As with any cryptocurrency, PAXG is subject to market volatility, which can affect its price.

• Regulatory Risk

• : Changes in regulatory policies could impact the use and acceptance of PAXG[4].

• Technology Risk

• : Being a digital asset, PAXG is subject to risks associated with blockchain technology, such as potential security vulnerabilities.

• Liquidity Risk

• : While PAXG is tradable, liquidity may vary across different exchanges, potentially impacting the ease of trading.

• Dependence on Custodian

• : The physical gold backing PAXG is under the custody of Paxos Trust Company, making the token holders reliant on the custodian's security and solvency.

• Gold Backing

• : PAXG offers a direct investment in physical gold, which has historically been a reliable store of value.

• Blockchain Benefits

• : The token provides the divisibility and liquidity of a cryptocurrency, making it easier to trade and transfer than physical gold

• No Storage Fees

• : Unlike physical gold, PAXG does not incur any storage fees, making it a more cost-effective investment

• Regulatory Oversight

• : The regulatory oversight by the New York State Department of Financial Services provides a level of security for investors.

• Redemption Options

• : Investors can redeem PAXG for physical gold or USD, providing liquidity and options for exit strategies.

• Physical Gold Ownership

• : PAXG uniquely represents ownership of physical gold, with each token corresponding to a specific gold bar

• Regulated and Secure

• : It is one of the few digital assets held by a US state department, offering a secure investment backed by physical assets.

• Redeemability

• : PAXG allows investors to redeem their tokens for physical gold, a feature not commonly found in other cryptocurrencies.

PAX Gold addresses the problem of accessibility and efficiency in gold investment. It eliminates the high costs and logistical challenges of storing and transporting physical gold while protecting regulated asset-backed ownership.

Charles Cascarilla is the founder and chief executive officer of Pax Gold.

PAX Gold (PAXG) did not undergo a traditional Initial Coin Offering (ICO) as it is a stablecoin whose value is pegged to the value of gold.

• Regulatory Changes

• : Future regulation changes could affect the legality or usability of PAXG.

• Custodial Risks

• : The reliance on Paxos Trust Company for the custody of the physical gold could pose risks if the company faces solvency issues.

• Market Risks

• : Gold prices and the cryptocurrency market are volatile, leading to unpredictable fluctuations in PAXG's value.

• Technology Risks

• : As a digital asset on the blockchain, PAXG could be affected by technological failures or security breaches.

• Liquidity Concerns

• : There may be liquidity concerns when trading PAXG, depending on the exchange and market conditions.

The PAX Gold (PAXG) whitepaper outlines the creation of a digital token that represents physical gold, aiming to combine the benefits of both assets. Each PAXG token is backed by one fine troy ounce of a London Good Delivery gold bar, stored in secure vault facilities. This approach ensures that PAXG holders have actual ownership of gold and can redeem their tokens for physical gold or the equivalent value in USD.

The whitepaper discusses the challenges of traditional gold investment, including high costs related to storage, insurance, and transportation, as well as issues with divisibility and liquidity. PAX Gold addresses these challenges by leveraging blockchain technology, providing a secure, efficient, and divisible means of owning gold. The tokenization of gold on the Ethereum blockchain allows for fractional ownership, easy transferability, and access to global markets without the logistical issues of physical gold.

Paxos, the company behind PAX Gold, emphasizes regulatory compliance and transparency. Paxos publishes monthly attestation reports and adheres to stringent risk management practices as a regulated financial institution. This commitment to transparency and regulation builds trust among investors and ensures the integrity of the PAXG token.

The whitepaper also details the technical aspects of PAXG, including its ERC-20 token standard on the Ethereum blockchain, which ensures compatibility with a wide range of wallets and exchanges. The token's smart contract allows for the minting and burning of PAXG in response to purchases and redemptions, ensuring that the supply of tokens always matches the physical gold reserves.

PAX Gold's unique selling proposition is its ability to make gold investment more accessible and flexible. By eliminating the minimum purchase requirements and storage costs associated with physical gold, PAXG opens up gold investment to a broader audience. Additionally, the token's redeemability for physical gold provides a tangible connection to the underlying asset, appealing to traditional gold investors seeking the advantages of blockchain technology.

In conclusion, the PAX Gold whitepaper presents a compelling case for the tokenization of gold to democratize gold investment and combine the stability of physical gold with the benefits of digital assets. Through strict regulatory compliance, transparency, and the innovative use of blockchain technology, PAX Gold offers a secure, efficient, and accessible way to invest in gold.

This summary provides an overview of the key points discussed in the PAX Gold whitepaper, highlighting the project's goals, technology, regulatory compliance, and investor benefits.