{"id":492129,"date":"2022-09-11T17:00:00","date_gmt":"2022-09-11T14:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-is-pax-gold-paxg-and-how-does-it-work\/"},"modified":"2022-09-11T17:00:00","modified_gmt":"2022-09-11T14:00:00","slug":"what-is-pax-gold-paxg-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/","title":{"rendered":"# What is PAX Gold (PAXG) and how does it work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a24a07086f22\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a24a07086f22\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#%E2%80%9D_What_is_PAX_Gold_PAXG_and_how_does_it_work_%E2%80%9C\" >&#8221; What is PAX Gold (PAXG) and how does it work?  &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#What_Is_PAX_Gold\" >What Is PAX Gold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#Who_Is_Behind_PAX_Gold\" >Who Is Behind PAX Gold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#How_does_PAXG_work\" >How does PAXG work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#Is_Pax_Gold_real_gold\" >Is Pax Gold real gold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#Whats_the_difference_between_PAXG_and_gold_ETFs\" >What\u2019s the difference between PAXG and gold ETFs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#How_does_PAX_gold_make_money\" >How does PAX gold make money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-pax-gold-paxg-and-how-does-it-work\/#The_future_of_asset-backed_tokens\" >The future of asset-backed tokens<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_What_is_PAX_Gold_PAXG_and_how_does_it_work_%E2%80%9C\"><\/span>&#8221; What is PAX Gold (PAXG) and how does it work?  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-71846793>\n<p dir=\"ltr\">In recent years, nonfungible tokens (NFTs), cryptocurrencies and other modern investment options have become trendy. However, physical commodities such as gold are still in high demand. In 2021, the global market capitalization for cryptocurrency surpassed $2 trillion. Now, investors must ask themselves: which option should I choose \u2014 crypto or gold?<\/p>\n<p dir=\"ltr\">Gold is a commodity that dates back thousands of years as a store of value and as a means of exchange and is still successful today. Even with the invention of decentralized digital cryptocurrency, gold has remained just as prominent. Although, for most individual investors, owning gold can be difficult and out of reach. There is one crypto company, PAX Gold (PAXG), whose goal is to make gold ownership more democratic and available to everyday investors by allowing them to trade it like any other cryptocurrency.<\/p>\n<p dir=\"ltr\">PAX Gold has discovered a method to combine cryptocurrency with physical gold assets, making it attractive to investors accustomed to conventional alternatives. This article will discuss PAX Gold (PAXG) and analyze how the cryptocurrency works.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_Is_PAX_Gold\"><\/span>What Is PAX Gold?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Paxos Gold is a cryptocurrency that is backed by real gold reserves held by Paxos, a for-profit company in New York. Each PAXG token is linked to a 1:1 ratio to one troy ounce (t oz) of a 400-ounce London Good Delivery gold bar stored at Brinks Security vaults in London. The Paxos-backed cryptocurrency, PAXG, is backed by the London Bullion Market Association (LBMA) certified gold bars and may be redeemed for actual bullion.<\/p>\n<p dir=\"ltr\"><strong><em>Related: What is a gold-backed token and how does it work?<\/em><\/strong><\/p>\n<p dir=\"ltr\">PAX Gold investors are spared the trouble of storing and securing physical gold, as well as transporting it. Also, shares can be bought fractionally, which makes it more accessible for retail investors who otherwise would be hindered by the high cost of gold. PAX Gold boasts a combination of qualities from both physical gold ownership and cryptocurrency that provide solutions to many modern-day challenges in the gold market such as high costs, storage concerns and the lack of liquidity.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Who_Is_Behind_PAX_Gold\"><\/span>Who Is Behind PAX Gold?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">The Paxos Trust Company, a financial institution and tech company based in New York City that specializes in blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, created PAX Gold. Charles Cascarilla and Richard Teo, both former analysts at different firms (Cascarilla at Goldman Sachs and Teo at Cedar Hill Capital Partners), founded Paxos in 2012.<\/p>\n<p dir=\"ltr\">PAX Gold is not the only crypto project that Paxos has undertaken. In addition to PAX Gold, they have also created PAX Dollar (USDP), a digital United States dollar and stablecoin. They have received strong institutional support and have raised over $500 million in total funding from investors like OakHC\/FT, Mithril Partners and PayPal Ventures.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_does_PAXG_work\"><\/span>How does PAXG work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">The PAX Gold token is built on the Ethereum blockchain, which gives it portability among wallets, exchanges, decentralized finance (DeFi) platforms, and other <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s that use Ethereum. PAX Gold allows users to trade, stake or redeem their tokens for high-quality gold bars. These gold bars are accredited by the London Bullion Market Association and stored in secure vaults around the world. Even with these top-notch security measures and high-quality gold, PAX Gold doesn\u2019t charge any custodial or storage fees \u2014 only a 0.02% transaction fee.<\/p>\n<p dir=\"ltr\">Is Pax Gold safe? PAX Gold is not only accredited with a gold standard, but it also functions dependably and transparently. Both PAX Gold and its holding company, Paxos Trust, are under the legal jurisdiction of the New York Department of Financial Services (NYDFS). Furthermore, PAX Gold protects the consumer and the company\u2019s assets independently, ensuring that the consumer is secure in the event of bankruptcy.<\/p>\n<p dir=\"ltr\">PAXG undergoes monthly audits from a third-party auditing firm to ensure that its gold reserves match the supply of PAXG tokens. The reports from these attestations are released on Paxos\u2019 official website. In addition, PAXG\u2019s developers run regular smart contract audits to search for any potential bugs or vulnerabilities in the network.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Is_Pax_Gold_real_gold\"><\/span>Is Pax Gold real gold?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">As mentioned earlier, Pax gold is tokenized gold that operates on a blockchain network. Tokenization is the digital transformation of both physical and intangible assets into cryptocurrency. The PAXG token specifically represents physical gold from the Paxos trust company. Gold is a good store of value because it keeps its value over time. As such, it is often used as a hedge against inflation. When the USD loses value, gold becomes more expensive in USD and vice versa. This makes gold a popular choice for investors looking to protect their wealth from inflation.\u00a0<\/p>\n<p dir=\"ltr\">The PAXG tokens have serial numbers that match those of individual gold bars. The serial number, value and other characteristics of a holder\u2019s physical gold may be discovered by inputting an individual\u2019s Ethereum wallet address on the PAXG lookup tool. They also have the option to convert their PAXG into fiat money, another cryptocurrency or allocated and unallocated gold bullion bars at the current market price of gold.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Whats_the_difference_between_PAXG_and_gold_ETFs\"><\/span>What\u2019s the difference between PAXG and gold ETFs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">The main difference between a gold ETF and Pax Gold is that an ETF purchases a contract that mimics the price of gold, but the user does not own the underlying asset. Each PAXG token is directly linked to a real gold bar kept in a London vault, with each PAXG token being equivalent to one.<\/p>\n<p dir=\"ltr\">Gold exchange-traded funds (ETFs) track the value of the underlying commodity. They just give investors access to the price of gold, but not ownership. An investor who owns a gold ETF is a party in an agreement that gives him or her a specific fraction of the pooled gold. Gold ETFs can\u2019t compare to full ownership of the metal. For example, by the time settlement occurs, the contract value may be lower than what you would get if you simply owned the gold outright.<\/p>\n<p dir=\"ltr\">In contrast, a PAXG is a digital representation of physical gold. Each PAXG token represents one troy ounce of gold in London vaults that can be identified by sequential numbers. Trading PAXG does not take days to settle as physical gold bar trading might do because it is handled on Ethereum as an ERC-20 token.<\/p>\n<p dir=\"ltr\">PAX Gold is the perfect investment for both traditional and modern investors who want to stay on trend without compromising their personal goals. With actual gold assets reflected in crypto tokens, you can invest in both physical and digital resources with a single investment, taking advantage of the best aspects of each.<\/p>\n<h2 dir=\"ltr\"><img loading=\"lazy\" decoding=\"async\" width=\"1450\" height=\"1042\" alt=\"Paxos Gold vs. Gold ETFs\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/ddbd43703e20aa945d9c02fda360c7ee.png\" title=\"Paxos Gold vs. Gold ETFs\"><\/h2>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_does_PAX_gold_make_money\"><\/span>How does PAX gold make money?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">PAX Gold will earn revenue in two ways: a small premium on the gold and a tokenization fee at the time of initial purchase. The percentage for the tokenization fee depends on the amount purchased initially; it is 1% for purchases of one ounce or less but significantly lower for larger purchases. Paxos will not charge custody fees, but it will charge a fee of 0.02% whenever a customer wants to buy or sell a token on a blockchain network.<\/p>\n<p dir=\"ltr\"><strong><em>Related: What is tokenized real estate? A beginner\u2019s guide to digital real estate ownership<\/em><\/strong><\/p>\n<p dir=\"ltr\">Can you stake PAXG? You can earn interest on your PAXG by lending it to a custodian, but rates will differ depending on the lender. Staking your PAXG also allows you to earn interest, but you must lock up your tokens for a specific period of time. How to buy PAXG? The token is available for purchase on several exchanges, including Binance, Kraken, KuCoin and Coinbase. Here are the steps to buy PAXG tokens on the Coinbase crypto exchange:\u00a0<\/p>\n<ol>\n<li aria-level=\"1\" dir=\"ltr\">\n<p dir=\"ltr\" role=\"presentation\">Download a self-custody wallet that supports PAXG like the Coinbase wallet.<\/p>\n<\/li>\n<li aria-level=\"1\" dir=\"ltr\">\n<p dir=\"ltr\" role=\"presentation\">Securely store your recovery phrase.<\/p>\n<\/li>\n<li aria-level=\"1\" dir=\"ltr\">\n<p dir=\"ltr\" role=\"presentation\">Understand and prepare for Ethereum network fees.<\/p>\n<\/li>\n<li aria-level=\"1\" dir=\"ltr\">\n<p dir=\"ltr\" role=\"presentation\">Buy and transfer Ether (ETH) to your self-custody wallet.<\/p>\n<\/li>\n<li aria-level=\"1\" dir=\"ltr\">\n<p dir=\"ltr\" role=\"presentation\">In the trade section, use the ETH to purchase PAX Gold.<\/p>\n<\/li>\n<\/ol>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"The_future_of_asset-backed_tokens\"><\/span>The future of asset-backed tokens<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Asset-backed tokens are digital representations of physical assets that can be redeemed for the underlying asset. That asset could be gold, oil, real estate, equity, soybeans or just about any other commodity.<\/p>\n<p dir=\"ltr\">Asset-backed tokens are cracking open markets that were once inaccessible and costly by making transactions that don\u2019t need a central figure. By doing this, we\u2019re ensuring both security and transparency in business relationships. This is changing the way we do business for the future and how we think about ownership and wealth creation.<\/p>\n<p dir=\"ltr\">Asset-backed tokens may also help to address issues caused by inflated or depreciated currencies, as well as the unpredictable stock market. Individuals have a viable new financial choice that combines digital liquidity with real asset values when needed, thanks to asset-backed tokens\u2019 potential. We\u2019ve already seen how asset-backed tokens are being used in numerous applications.<\/p>\n<p dir=\"ltr\">The future of asset tokenization is only as limited as the imagination. With new use cases being discovered every day, it\u2019s exciting to think about all the possibilities for how asset-backed tokens can help people and businesses around the globe.<\/p>\n<p><strong><em>Purchase a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/app.sharpshark.io\/certificate\/2429825265417499051972364248873862211339714717227596525330\">licence<\/a> for this article. Powered by SharpShark.<\/em><\/strong><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/what-is-pax-gold-paxg-and-how-does-it-work\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; What is PAX Gold (PAXG) and how does it work? &#8220; In recent years, nonfungible tokens (NFTs), cryptocurrencies and other modern investment options have become trendy. However, physical commodities such as gold are still in high demand. In 2021, the global market capitalization for cryptocurrency surpassed $2 trillion. Now, investors must ask themselves: which&#8230;<\/p>\n","protected":false},"author":1,"featured_media":492130,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy81NzI0Njc1MTNmZDJlMGQ1YWY2YzExMTEyOGMxZDBjZS5qcGVn.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[88725,74894,74863,76153,75849,74891,110520,76605,75493,74892,71835,73711],"class_list":["post-492129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-assets","tag-blockchain","tag-cryptocurrencies","tag-dollar","tag-etf","tag-ethereum","tag-how-to-crypto","tag-paxos","tag-stablecoin","tag-tokens","tag-gold","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/492129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=492129"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/492129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/492130"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=492129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=492129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=492129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}