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What Is PAX Gold (PAXG)?

What Is PAX Gold (PAXG)?


TL;DR

PAX Gold (PAXG) is an ERC-20 stablecoin backed by bodily gold reserves in secured London vaults. PAXG lowers the entry barrier to gold funding by permitting customers to personal fractions of bodily gold with out the burden of storage and transportation charges. Users can commerce PAXG as a digital asset on centralized crypto exchanges and DEXs. 

Introduction

Gold has maintained its standing as a useful commodity for 1000’s of years. It’s used to make jewellery, retailer worth, and even hedge towards inflation. However, shopping for bodily gold may be costly and cumbersome for the common retail investor. For one, storing gold requires a secure location, corresponding to a financial institution vault. Moreover, transporting gold from one location to a different could be a complicated activity attributable to its heavy weight.

Paxos Trust Company goals to deal with these challenges with PAX Gold (PAXG) — tokenized gold that lives on the blockchain. 

What is PAX Gold (PAXG)?

PAX Gold (PAXG) is an ERC-20 stablecoin backed by bodily gold reserves, held in custody by the Paxos Trust Company. Each PAX Gold token equals one troy ounce of a 400-ounce London Good Delivery gold bar housed in secured gold vaults, corresponding to Brink’s. Since PAXG represents bodily gold, its worth is tied on to the real-time market worth of that bodily gold.

PAXG is regulated and permitted by the New York State Department of Financial Services. To make sure that Paxos maintains its reserves, a third-party auditing agency performs month-to-month checks to confirm that Paxos’ gold reserve matches the provision of PAXG tokens, and these attestation experiences are launched on Paxos’ official web site. PAXG’s builders conduct common smart contract audits to establish potential bugs and vulnerabilities.

In addition, all Paxos clients’ property, together with PAXG, are shielded from chapter and held individually from firm property.

How does PAXG work?

PAX Gold runs on the Ethereum blockchain. As an ERC-20 token, PAXG is suitable with Ethereum-based wallets, may be built-in with DeFi DApps and DEXs on Ethereum, and may be traded on cryptocurrency exchanges like Binance. 

Compared to proudly owning bodily gold bars, proudly owning PAXG doesn’t require any vault storage or custody charges. Each PAXG transaction solely incurs a small transaction payment of 0.02% and a few ETH as fuel charges. It lowers the entry barrier to gold funding by letting customers personal fractions of bodily gold bars with out the burden of charges, storage, or transportation prices. 

PAXG tokens are allotted serial numbers that match these of particular person gold bars. Holders can discover their bodily gold’s serial quantity, worth, and different traits by getting into their Ethereum pockets deal with on the PAXG lookup tool. They may redeem their PAXG anytime for fiat forex, one other crypto asset, or allotted and unallocated gold bullion bars from gold retailers on the present market value of gold.

What’s the distinction between PAXG and gold ETFs?

Gold exchange-traded funds (ETFs) monitor the worth of the underlying gold. They solely give buyers publicity to the worth of gold, however not the possession of it. An investor in possession of a gold ETF shares is a celebration in a contract that represents the entitlement to a particular share of the pooled gold. Gold ETFs can not substitute for full possession of gold. For instance, in instances of disaster and volatility, the contract worth may very well be decrease than the underlying worth of the gold it represents by the point of settlement.

PAXG, in distinction, is a digital illustration of gold. Each PAXG token represents one advantageous troy ounce of gold housed in secured London vaults that may be recognized by serial numbers. Trading PAXG doesn’t take days to settle as may very well be the case when buying and selling bodily gold bars. As PAXG exists on Ethereum as a ERC-20 token, PAXG may be traded with a near-instant settlement.

How to purchase PAXG on Binance?

You should buy PAX Gold (PAXG) on crypto exchanges like Binance

1. Log in to your Binance account and click on [Trade] – [Spot].

2. Search “PAXG” to see the out there buying and selling pairs, together with PAXG/BUSD, PAXG/USDT, PAXG/BNB, and PAXG/BTC.

3. Go to the [Spot] field and enter the quantity of PAXG to purchase. In this instance, we’ll use a Market order. Click [Buy PAXG], and the bought PAXG will likely be credited to your Spot Wallet.

Closing ideas

While varied crypto funding choices have gained reputation lately, bodily commodities are nonetheless frequent in conventional buyers’ portfolios. PAXG is seeking to supply a blockchain-powered various to this established market by using the velocity and liquidity of crypto property. 



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