Summary

PAX Gold (PAXG) is an ERC-20 stablecoin backed by physical gold stored in London vaults. PAXG allows users to purchase small amounts of physical gold without paying storage and transportation fees, thereby lowering the threshold for gold investment. As a digital asset, users can trade on centralized digital currency trading platforms as well as decentralized trading platforms.

Introduction

Gold has been a valuable commodity for thousands of years. People use gold to make jewelry, store value, and even use it to hedge against inflation. However, for ordinary retail investors, physical gold is expensive and the transaction process is cumbersome. After purchasing, you need a safe place like a bank vault to store it. In addition, gold is heavy and difficult to transfer.

To solve these problems, Paxos Trust launched PAX Gold (PAXG), a token that runs on the blockchain Turn into gold.

What is PAX Gold (PAXG)?

PAX Gold (PAXG) is an ERC-20 stablecoin backed by physical gold, with physical reserves hosted by Paxos Trust Company . One PAX Gold token is equivalent to one troy ounce of London Standard Delivery gold bar (a gold bar is 400 ounces). These gold bars are safely stored in vaults such as Brink. PAXG represents physical gold, and its value is directly linked to real-time gold prices.

Tokens are approved and regulated by the New York State Financial Services Authority. To ensure that the Paxos Trust holds sufficient gold reserves, third-party auditing firms conduct monthly reviews to verify that its gold reserves match the supply of tokens. These proof reports will be published on the Paxos official website. PAXG’s developers conduct regular smart contract audits to identify potential errors and vulnerabilities.

In addition, Paxos Trust Company will protect all customer assets, including the PAXG it holds, to avoid customer bankruptcy. The company manages its own assets and client assets separately.

How does PAXG work?

PAX Gold runs on the Ethereum blockchain. As an ERC-20 token, PAXG is compatible with Ethereum wallets, can be integrated with DeFi Dapps and Decentralized Exchanges on Ethereum, and can also be used on Trade on cryptocurrency exchanges such as Binance.

Compared with physical gold, holding PAXG does not require paying any vault storage fees and custody fees. For each PAXG transaction, traders only pay a 0.02% transaction fee and a gas fee of a small amount of Ether. PAXG allows users to purchase small amounts of physical gold without paying storage and transportation fees, thus lowering the threshold for gold investment.

PAXG tokens come with designated serial numbers that match independent gold bars. Holders can check their physical gold serial number, value and other physical characteristics by entering their Ethereum wallet address into the PAXG query tool. Holders can exchange PAXG for fiat currency, other crypto assets, or allocated or unallocated gold bars at any time at a gold retailer at real-time gold prices.

What is the difference between PAXG and gold ETF?

The gold exchange-traded open-end index fund (ETF) tracks the real-time value of gold. Investors receive only exposure to gold prices, not ownership of gold. Investors holding gold ETFs, as a party to the contract, are entitled to a certain proportion of gold reserves, but gold ETFs cannot replace full ownership of gold. For example, in times of crisis and market volatility, the contract value at settlement may be less than the underlying value of the gold represented.

In comparison, PAGX is a digital gold product. One PAXG token represents one troy ounce of gold held in a London vault and can be identified by its serial number. Trading physical gold can take days, but as PAXG is an ERC-20 token in Ethereum, there is almost no delay in real-time settlement.

How to buy PAXG on Binance?

You can buy PAX Gold (PAXG) on cryptocurrency exchanges like Binance.

1. Log in to your Binance account and click [Transaction] - [Spot].

2. Search for "PAXG" to view available trading pairs, including PAXG/BUSD, PAXG/USDT, PAXG/BNB and PAXG /BTC.

3. Enter the amount of PAXG you wish to buy in the [Spot] column. Here we take market order as an example. Click [Buy PAXG], and the purchased PAXG will be credited to your spot wallet.

Summary

In recent years, the popularity of various cryptocurrency investments has increased, but physical commodities are still favored by traditional investors. PAXG hopes to take advantage of the speed and liquidity of cryptocurrency assets and provide a blockchain-based alternative in this already mature market.