PAX Gold

What is PAX Gold (PAXG)?

PAX Gold is a stablecoin, built on the Ethereum blockchain and uses the ERC-20 token standard. It is a gold-backed crypto and was launched by Paxos Standard Creators the same company that owns the Paxos brokerage platform, in Sep 2019. Within months of its launch, Paxos Gold was backed by dozens of blockchain platforms and acquired for $5 million US dollars by prominent cryptocurrency lender Nexo. The market capitalization of PAXG increased to over $10 million as a result of this acquisition. 

Investors such as Mithril Capital Management, PayPal Ventures, Declaration Partners, and Oak HC/FT Partners have contributed $540 million to PAX Gold. 

The New York State Department of Financial Services granted regulatory approval for the gold-backed token in 2019, enabling Paxos Trust to make the token available to investors in the state. 

The main concept for launching PAX Gold is to make gold more tradable as an asset, as physical gold is not easily flexible or divisible in terms of transport and PAX Gold allows investors to buy indefinitely small amounts of gold through crypto.

One troy ounce of a 400-ounce London Good Delivery gold bar is pegged for PAXG, by this investor of PAXG actually owns the asset, which is regulated by Paxos Trust Co and can be redeemed at any point.

Paxos Trust provides real-time gold price and PAXG token price information using Chainlink's data oracle product. Oracle protocol helps in transferring data to a blockchain from an outside source. 

Users can now earn interest on their PAXG deposits thanks to the addition of PAX Gold to Celsius Network's interest-bearing cryptocurrency account platform in September 2020. Nexo, a competitor of Celsius Network, also included PAXG in its platform a month after the Celsius Network. 

Who Are the Founders of Pax Gold(PAXG) and Its History?

Pax Gold (PAXG) is a product of Paxos Trust Company founded in 2012 by Charles Cascarilla, Rich Teo, and Emil Woods. Initially launched as a Bitcoin exchange named itBit, the company rebranded to Paxos in 2016 with a mission to digitize financial markets and infrastructure.

On September 5, 2019, Paxos launched Pax Gold on the Ethereum blockchain as a tokenized representation of gold, thus allowing investors to own gold digitally without physical storage or handling costs. That same day, the New York Department of Financial Services (NYDFS) authorized Paxos to offer this service.

Significant regulatory milestones in Paxos' journey include:

2015: Granted a Limited Purpose Trust charter by NYDFS.

2018: Launched Paxos Standard (PAX) with NYDFS approval.

2019: Pax Gold received approval from the NYDFS.

Since then, Paxos has gone global with its innovation in regulated digital assets.

How does PAXG Technology work?

The PAX Golden Token is the embodiment of ownership rights in physical gold through the use of blockchain technology in an open, safe, and accessible manner. PAXG is built as an ERC-20 token and is executed on the Ethereum blockchain, thus adhering to these properties resulting in exchange compatibility with wallets or decentralized finances (DeFi). This actually allows trading, transfer, or storage directly into the very broad ecosystem of Ethereum.

Each PAXG token represents one fine troy ounce of a London Good Delivery gold bar, stored in secure, professional vaults. Ownership of the gold is linked to specific serialized bars, allowing holders to trace their assets with precision. This transparency is enhanced by Paxos’ platform, where users can verify the serial number, purity, and weight of the gold bar tied to their tokens.

The smart contracts on Ethereum operate automatically and accurately carry out those transactions, thus eliminating all human errors. Further, smart contracts make PAXG programmable in that it could be designed to be invited into lending or borrowing or other DeFi-applied conditions.

Robust Regulation: Part of PAXG regulation is being effective under the purview of New York Department of Financial Services (NYDFS) security. They have professed audit procedures regularly to meet the legal requirements for the government inspection and compliance. Their high-tech security ensures covered gold reserves match the circulating tokens. Linking blockchain with investment-grade gold, PAXG is the future of modern, decentralized ownership in a secure and scalable environment.

Where and How can you buy PAXG?

PAX Gold (PAXG) is a gold-backed digital product; it was supported by physical gold that equates to one fine troy ounce of a London Good Delivery gold bar. It is an amalgam between the stability of gold and the flexibility of cryptocurrency.

You can buy PAXG on top centralized exchanges (CEX) such as Binance, Kraken, MEXC Global, Bitrue, and CoinEx and leading decentralized exchanges (DEX) such as Uniswap, Sushiswap, Curve, Balancer, and Velodrome.

Steps to Purchase PAXG:

Select an Exchange: From the above list of exchanges, choose a user-friendly platform where the fees suit you as well as the security and the experience.

Create Account: Sign up on that exchange and complete all the verification processes that the exchange requires as the case may be.

Deposit Funds: Deposit funds into your accounts with the respective payment methods only such as bank transfer or cryptocurrencies.

Buy PAXG: Navigate to the PAXG trading pair and place your order by buying.

Secure Your Tokens: Transfer your PAXG to a personal wallet, the one that takes in ERC-20 tokens, for extra security.

Wallets For PAXG?

Different types of PAX Gold (PAXG) wallets are now on offer for different purposes. Hot wallets are well suited for high volume, such as those in MetaMask, Trust Wallet, and Exodus. Cold wallets are perfect for storing transactions over a long period due to the fact that they are offline. This also includes options like Ledger Nano X/S and Trezor Model T. Integrated wallets like MyEtherWallet (MEW) and the Brave Wallet enable easy interaction with the Ethereum blockchain. Exchange wallets of Binance, Coinbase, and Kraken include temporary holding of PAXG but are not meant to be used as the long-term vault. To be on the safe side, it would be perfect to transfer your PAXG tokens into a trusted wallet or even better, using the cold wallet for maximum safety.