Buy PAX Gold (PAXG)

What is PAX Gold?

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.

How does PAX Gold work?

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.

What are the potential use cases for PAX Gold?

PAX Gold's potential use cases include:

• Investment: Provides fractional ownership of gold, making it accessible to small investors and enabling institutional investors to diversify portfolios without physical storage concerns.
• Decentralised Finance (DeFi): Usable in DeFi protocols for staking, lending, or collateral due to its compatibility with the Ethereum blockchain.
• Inflation Hedge: Offers stability as a gold-backed asset, serving as protection against fiat currency devaluation.
• Global Trading: Tradable worldwide via its ERC-20 token structure, enhancing liquidity and accessibility.
• Regulated Digital Asset: Operates with regulatory oversight, ensuring legitimacy and transparency.

What is the history of PAX Gold?

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.