PAX Gold is a gold-backed cryptocurrency launched in September 2019 by the creators of Paxos Standard (PAX). It operates as an ERC-20 token on the Ethereum blockchain, designed to make gold more tradable by eliminating the need for physical storage and transportation. Each PAX Gold token is backed by physical gold, making it possible for investors to easily own and trade small amounts of gold.
PAX Gold operates on the Ethereum blockchain as an ERC-20 token, leveraging Ethereum's ecosystem, including wallets, exchanges, and decentralised finance (DeFi) platforms. It uses smart contracts to manage the issuance and redemption of tokens, ensuring each is backed by physical gold stored in secure vaults. With Ethereum's transition to Proof of Stake, PAX Gold benefits from enhanced security and energy efficiency. The token's price corresponds to the market value of gold, facilitated by Chainlink's price oracle.
PAX Gold's potential use cases include:
PAX Gold was launched in September 2019 by Paxos Trust Company, under the leadership of Charles Cascarilla. Aimed at making gold more accessible and tradable, it was introduced as a gold-backed cryptocurrency tokenized as ERC-20 on Ethereum. Since its launch, PAX Gold has achieved milestones such as regulatory oversight by the New York State Department of Financial Services and significant market expansion. It has been integrated into DeFi platforms and experienced notable growth in token supply and market capitalization. PAX Gold continues to evolve with technological advancements, including Ethereum's move to Proof of Stake and the use of secure smart contracts.