PAX Gold PAXG

PAX Gold is issued by the New York company Paxos under state financial regulation: one token entitles the holder to one troy ounce of gold in a London Good Delivery bar held in professional vaults in London, and the bar's serial number can be looked up from the holder's address.

Unlike a gold fund, no ongoing charge is levied for holding alone — the issuer earns on creation and redemption, while transfers between wallets carry a small protocol fee. Because the token is an Ethereum contract, decentralised finance applications will accept it, as collateral for instance, which physical metal cannot be.

A large holder may take delivery of a bar; a small one sells the token or redeems it for cash. The instrument solves gold's old problem of divisibility and instant transfer while keeping the link to metal. Its price tracks the metal, so inside a crypto portfolio it behaves as a foreign, loosely correlated holding — the trade-off being dependence on an issuer and a vault.

No separate storage charge is levied on holders; the issuer earns on creation and redemption instead.