What is PAX Gold (PAXG)?

PAX Gold (PAXG) is a gold-backed token issued by Paxos. Its product description states that each token represents one fine troy ounce of allocated gold in professional London vaults. It is exposure to gold, not a fixed dollar balance.

It is an example of real-world asset tokenization. The blockchain records token transfers; a custodian protects the metal. Holding a private key does not give the holder physical control over the vault.

Example: owning 0.1 PAXG

Imagine holding 0.1 PAXG, ignoring fees. That represents 0.1 fine troy ounce. At an illustrative gold price of $4,000 an ounce, the metal value is $400. An executable exchange quote may differ because of spreads and liquidity; $4,000 is an assumption, not a current price.

A fractional token balance should not be confused with eligibility for a small physical delivery from Paxos. Its issuance and redemption explanation distinguishes full-bar delivery at the 430-ounce scale. See the PAXG price page for market movements.

For the practical differences in custody, fees and converting a holding into money, our PAXG and XAUT custody and exit analysis compares the documents with worked examples.