PAX Gold: an alternative to physical gold

Lately we often hear about safe haven assets. Anyone who doesn’t want Bitcoin and is an old-fashioned person, when he hears of a safe haven he immediately thinks of a well-known metal: gold. Today I’m talking about PAX Gold, a tokenized version of gold that represents the real and physical one.

PAX Gold (PAXG) was founded in 2019 by American financial analyst and investor Charles Cascarilla and Asian financial analyst Rich Teo. PAX Gold is an ERC20 token built on the Ethereum network. Each token represents one fine troy ounce of gold, stored in LBMA vaults in London. Whoever owns PAXG has the ownership rights to that gold in the custody of the Paxos Trust Company. Since PAXG represents physical gold, its value is directly tied to value real-time market price of that physical gold. PAXG offers clients the benefits of actual physical ownership of specific gold bars with the speed and mobility of a digital asset. Clients can have fractional ownership of physical bullion. On the Paxos platform, clients can convert their tokens into allocated, unallocated gold or fiat currency (and vice versa) quickly and efficiently. At any time, PAXG holders can look for the serial number, value and physical characteristics of their stored gold by simply entering their Ethereum wallet address here.

Physical gold on Blockchain has the advantages of representing legal ownership of physical allocated gold, but does not have the disadvantages of limited portability or the high storage costs usually associated with it. On the contrary, it has the divisibility, fungibility and tradability of any digital asset such as Bitcoin. In other words, the best of physical and digital assets at the same time.

PAXG has been approved and regulated by the New York Department of Financial Services (DFS) and is fully backed by gold held in the safest and most valuable vaults in the world. A country-level auditor will certify the corresponding supply of PAXG tokens and underlying gold each month. You can easily convert or redeem PAXG for fiat, physical or unallocated gold via the Paxos platform, trade PAXG for other digital assets on a number of popular cryptocurrency exchanges, and use PAXG wherever ERC-20 tokens are supported.

PAX Gold cannot be mined. The amount of gold that represents the total supply of PAXG is in a 1:1 ratio, i.e. one troy ounce of gold equals one PAXG. The total supply of gold representing PAXG changes continuously as the capitalization of PAXG market waxes and wanes.

PAX Gold is developed by Paxos, a private company based in New York, USA. The most notable Team member is co-founder Charles Cascarilla.

Charles co-founded institutional asset management complex Cedar Hill Capital Partners in 2005 and its venture capital subsidiary, Liberty City Ventures, in 2012. Earlier in his career, Charles was a portfolio manager at Claiborne Capital and worked at Bank of America Securities and Goldman Sachs. He is also a founding member of the Association of Digital Asset Markets (ADAM), a private organization of member firms seeking to build a safer, stronger and more efficient digital asset marketplace.

PAX Gold has a position on Coinmarketcap that fluctuates between the fiftieth and the hundredth place of the most capitalized cryptocurrencies.

Disclaimer: I am not aware of any third party rights on the images used. I undertake to cite the source if there are any and to adjust the position if requested.

Disclaimer: Trading cryptocurrencies carries a high level of risk and may not be suitable for all investors. Before deciding to trade cryptocurrency you should carefully consider your investment objectives and your level of experience. Do Your Own Research. All opinions expressed here are owned by the respective writer and should never be considered as financial advice in any form.