PAX Gold: The Safest Way to Own Gold
Investors around the world like to hold gold as a safe haven asset during times of economic uncertainty and volatility. In the last several months we’ve seen the price of gold surge because of this investor demand. Then it fell and recently hit a strong support. Some expect the price to keep going up.
While there are plenty of ways to buy, sell or hold gold, not all products are created equal. We created PAX Gold (PAXG) to be the safest and easiest way to hold gold. It is digital gold backed by physical gold bars.
Each token is backed by one fine troy ounce of London Good Delivery gold. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company. With PAX Gold, anyone can benefit from owning the highest-quality physical gold without having any of the drawbacks of other gold products.
Above all, PAX Gold is a product everyone can trust. Trust underpins all aspects of our company and products. We’ve spent a long time making sure PAX Gold is the safest way to own gold. Here’s why you can trust it.
PAX Gold is Issued by Paxos Trust Company – A Regulated Financial Institution, Required to Keep your Assets Safe at All Times
Paxos is the first digital asset Trust company. A New York Department of Financial Services (NYDFS) Trust charter is the gold standard for digital asset regulation (no pun intended). It’s the highest designation – we have the most rigorous oversight and compliance standards in place to protect your assets. We’re required to hold all customer funds in segregated, bankruptcy remote accounts.
When you own PAX Gold, your gold bars will always be yours, even in the unlikely case something happens to Paxos. No other gold products offer this access, safety and direct ownership. Paxos has distinguished itself within the industry by accomplishing this regulation and compliance. We’ve earned the trust of both institutional and individual investors.
PAX Gold is also the Only Regulated Gold-Backed Token
The NYDFS approved PAX Gold as a regulated product in September 2019. We offer greater customer protections and higher standards of operation because we’re regulated. PAX Gold was carefully vetted by NYDFS before launch, and there is oversight over our ongoing operations. No other gold token has this oversight.
Paxos also works with Withum, a top-ranked auditing firm to independently verify that the entire supply of PAX Gold tokens corresponds 1:1 with ounces of London Good Delivery gold held in Brink’s vaults. We publish those reports on a monthly basis. This shows our customers we meticulously manage the PAX Gold supply. You can review all PAX Gold attestations on our website.
We Only Work with Premium Partners to Source Store London Good Delivery Gold
London is the center of the world’s gold market. Every PAX Gold token is backed 1:1 by London Good Delivery gold. It meets the highest standards for quality and is produced by accredited refiners. We’ve partnered with premium operators to buy and store London Good Delivery gold. These partnerships ensure our customers get only London Good Delivery gold. We source gold bars from INTL FCStone and we store gold reserves with Brink’s bullion vaults in London.
When Gold is on the Blockchain, You Can Always Verify Ownership and Authenticity
PAX Gold is tokenized physical gold. It lives on the Ethereum blockchain, a digital ledger system that records the ownership and attributes of an asset. Paxos tokenizes physical gold bars and allocates each token a serial number corresponding to a gold bar. We provide specifications of the tokenized gold bars to customers. PAXG holders can use our gold allocation look up tool to find the serial number, fineness and weight of the gold bar backing their tokens.
This transparency is only possible because of blockchain technology. Gold retailers cannot always verify the quality or source of their inventory like Paxos can. The same goes for products like gold ETFs and futures contracts, which are not tied to specific gold bars. PAX Gold is different – the quality and ownership can always be verified on the blockchain.
At Paxos, our mission is to build market infrastructure for an open financial system. We believe trust and safety are at the foundation of that mission. PAX Gold is a first of its kind product, and we can proudly say that it’s physical and digital gold that you can trust.
Buy and trade PAXG at Bitget now!
By Dan Burstein | Edited by Saulo Alencastre (Bitget)
This article was first published on Paxos.com on May 8, 2022 and has been edited and updated on July 26, 2022 for the Bitget audience.
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