Overview
PAX Gold (PAXG) is a token issued by Paxos, launched in September 2019. Each PAXG represents one fine troy ounce of a London Good Delivery gold bar, stored in professional vaults in London. Paxos is regulated by the New York Department of Financial Services (NYDFS).
Gold reached record prices in early 2026, and PAXG grew with it: its market value passed $2.5 billion in March 2026 before easing to about $1.8 billion in October as gold fell back.
How it works
- Buying PAXG means owning a share of specific, allocated gold bars, which you can look up on Paxos’s site.
- PAXG is an Ethereum token, so it can be held in a wallet, traded on exchanges and used in some DeFi apps.
- Holders can redeem PAXG with Paxos for cash or, subject to minimums and conditions, for physical gold bars.
- There are no storage fees; a small fee applies to token transfers.
The PAXG token
| PAXG at a glance | |
|---|---|
| Backing | 1 troy ounce of gold per token |
| Supply (Oct 2026) | about 446,000 PAXG (ounces) |
| Price (29 Oct 2026) | about $4,023 (follows gold) |
| All-time high | about $5,619 (January 2026) |
| Market cap | about $1.8 billion (#55) |
Risks
- Gold price. PAXG goes up and down with gold; gold fell back from its January 2026 record.
- Issuer risk. You rely on Paxos holding the gold and operating correctly (Paxos made a separate stablecoin minting error in 2025).
- Redemption. Getting physical gold is possible but not practical for small amounts.
- Regulation. Still less established than traditional gold ETFs.
PAXG vs. the competition
| PAX Gold (PAXG) | Tether Gold (XAUt) | Gold ETF (e.g. GLD) | |
|---|---|---|---|
| Issuer | Paxos (NYDFS) | Tether | Asset manager |
| Storage | London vaults | Swiss vaults | Vaults (varies) |
| Trade 24/7 on-chain | Yes | Yes | No |
| Regulation | Stronger | Lighter | Strong |
Our verdict
PAXG is one of the most trustworthy ways to hold gold on a blockchain: regulated issuer, allocated bars and simple, transparent rules. For crypto users who want gold exposure, it is a strong option.
But it is still a gold investment with issuer risk: it follows the gold price and depends on Paxos. Consider it alongside traditional gold products, not as a replacement for diversification.
This review is for information only and is not financial advice.