PAXG is a digital token that represents physical gold held in custody by Paxos Trust Company. Each PAXG token represents one fine troy ounce of a 400 oz London Good Delivery gold bar. The gold bars are stored in the Brink's vaults in London, and Paxos Trust Company provides daily attestations of the gold holdings to verify the backing of the PAXG tokens.
PAXG is an ERC-20 token on the Ethereum blockchain and can be stored in any ERC-20 compatible wallet. The token is traded on various cryptocurrency exchanges and can be bought and sold like any other cryptocurrency.
One of the benefits of PAXG is that it allows investors to hold physical gold without having to worry about storage or security concerns. The token can be used as a hedge against inflation or market volatility, and it offers investors the ability to easily move in and out of gold positions.
Paxos Trust Company is a regulated financial institution in the United States and is subject to oversight by various regulatory agencies. The company provides transparency and accountability to its customers and operates with the goal of building trust in the digital asset space.
The value of PAXG is directly tied to the value of physical gold, which can be affected by various economic factors such as interest rates, inflation, and geopolitical events. As with any investment, it is important to consider the risks and benefits before investing in PAXG.