Question 1

What is PAX Gold (PAXG)?

Accepted Answer

PAX Gold (PAXG) is tokenized gold administered by Paxos Trust Company, NA. Each PAXG represents one troy ounce of London Good Delivery fine gold; token holders acquire a beneficial interest in the corresponding allocated gold, rather than a claim to a fixed fiat-currency amount. Paxos holds the gold backing PAXG in segregated custody at LBMA-recognized vaults.

Question 2

What asset does one PAXG represent?

Accepted Answer

One PAXG corresponds to one troy ounce of London Good Delivery fine gold; one troy ounce is approximately 31.1035 grams. This “one-to-one” relationship means that the total PAXG supply corresponds to the quantity of allocated gold held for holders’ benefit; it does not mean each address is permanently linked to the same gold bar. As transfers, purchases, and redemptions occur, Paxos may reallocate the gold bars corresponding to tokens.

Question 3

What can PAXG be used for?

Accepted Answer

PAXG’s core use is to represent gold exposure in the form of an on-chain token: holders can hold, transfer, trade, or pay with it in contexts that accept PAXG. Because it is an ERC-20 token on Ethereum, whether a transfer succeeds also depends on whether the recipient supports that standard, whether the address and network are correct, and whether the sender pays the required Ethereum network fees. On-chain transferability does not mean every platform provides exchange or physical-delivery services.

Question 4

Is PAXG a stablecoin?

Accepted Answer

PAXG is not a stablecoin targeted to be pegged to a fiat-currency price. Its reference asset is London Good Delivery gold, so its economic value mainly changes with gold’s price relative to currencies; for example, if gold priced in U.S. dollars rises or falls, PAXG’s gold exposure changes accordingly. Secondary-market transaction prices may also diverge from this reference value because of liquidity, bid-ask spreads, and trading venues.

Question 5

Can I hold less than one PAXG?

Accepted Answer

Yes. PAXG can be held in fractional units, so holding gold exposure on-chain does not require buying one full token or one full gold bar. Fractional holdings address token denomination; they do not change the minimum amount and account-eligibility requirements for redeeming allocated physical gold bars through Paxos. The minimum amount that can be entered on a particular wallet or trading platform remains subject to that service’s rules.

Question 6

How can I learn about PAXG’s gold-reserve information?

Accepted Answer

You can first use Paxos’s public lookup page to view the serial number, fineness, and gross weight of the gold bars represented by tokens at a public Ethereum address; this enables on-chain holdings to be matched with allocated-gold information. Paxos also publishes information on the composition of its gold reserves and independent third-party attestation materials. Lookup results reflect the allocation relationship at that time, and linked information may change after bars are reallocated due to transfers, issuance, or redemption.

Question 7

Can PAXG be exchanged for gold or cash?

Accepted Answer

Eligible, verified Paxos customers can convert PAXG into U.S. dollars, unallocated gold, or allocated gold; therefore, obtaining and completing verification for a Paxos account, then depositing PAXG into that account, is required to enter the conversion or redemption process. To redeem one allocated London Good Delivery gold bar, the minimum is 430 PAXG, plus applicable fees, and additional due diligence may be triggered; after Paxos determines the bar for delivery, it credits PAXG exceeding that bar’s actual weight (after fees) back to the account. Account-balance updates for conversion or redemption may take several business days.

Question 8

What is the relationship between PAXG issuance and gold reserves?

Accepted Answer

PAXG issuance is based on its correspondence with allocated gold. When customers purchase using U.S. dollars, Paxos promptly converts the dollars into an equivalent value of London Good Delivery gold, thereby maintaining a one-to-one relationship between the amount of PAXG and the quantity of allocated gold; redemption or conversion correspondingly reduces the gold or token balance available to support tokens in circulation. This mechanism explains how reserves support tokens, but does not guarantee that secondary-market transaction prices will always equal the spot-gold reference price.

Question 9

What is the relationship between PAXG’s price and the gold price?

Accepted Answer

PAXG’s value basis is the one troy ounce of London Good Delivery gold it represents, so gold’s market price relative to currencies is the main transmission factor. If secondary-market quotations diverge from gold’s value, trader buying and selling, liquidity provision, and eligible conversion channels may affect the spread, but whether it converges depends on fees, eligibility, market depth, and operational constraints. Therefore, PAXG does not promise a fixed U.S.-dollar price, and gold prices alone cannot be used to infer an immediate transaction price on any platform.

Question 10

What does holding PAXG represent?

Accepted Answer

Holding PAXG represents a proportional beneficial interest in the corresponding allocated gold: holders bear that gold’s economic gains and risks. It is not Paxos equity, a governance voting credential, or a fixed-income product; available conversion, lookup, and delivery arrangements are limited by applicable Paxos terms, account status, fees, and legal requirements.

Question 11

Can PAXG be transferred on-chain?

Accepted Answer

Yes, PAXG is an ERC-20 token on the Ethereum public blockchain. When sent, transactions are processed by the Ethereum network, and congestion, higher network fees, network changes, or forks may affect confirmation costs, timing, or availability; the receiving address must support the network on which PAXG is issued. Also note that Paxos’s terms reserve the ability to freeze or upgrade all PAXG in limited circumstances and may restrict access to tokens or the backing gold in order to comply with legal directives.

Question 12

Where can I find official information about PAXG?

Accepted Answer

Product definitions, reserve-transparency materials, and address-to-gold lookup information are available from Paxos’s official PAXG pages and developer documentation; account purchases, conversions, redemptions, fees, and delivery conditions should be governed by the latest PAX Gold terms and Paxos user guidance. In particular, before physical redemption, verify the minimum amount, fees, identity verification, and delivery arrangements, because these conditions directly determine whether that route is available.

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