What is PAX Gold (PAXG)?

In today's crypto market, investors are constantly looking for new ways to combine the stability of traditional assets with the flexibility of blockchain. So, what is PAX and how does it work? PAX Gold ( PAXG ) fits into this picture? PAX originally referred to Paxos Standard, a regulated dollar-backed stablecoin, while PAXG extends this model by tokenizing physical gold. As a cryptocurrency backed by gold, PAXG combines the trusted value of gold with on-chain efficiency, making it an ideal choice for airdrop hunters and blockchain enthusiasts.

##What is PAX Gold (PAXG)? PAX Gold (PAXG) is an ERC-20 token issued by Paxos Trust Company, with each token representing one ounce of high-quality London Good Delivery gold, which is stored in professional vaults. Unlike traditional gold investments, PAXG allows for fractional ownership, enabling anyone to purchase as little as 0.01 PAXG and hold equivalent legal rights to specific ounces of gold.

##How does PAX Gold work? On the Ethereum blockchain, minted tokens are strictly supported by a 1:1 physical gold deposit. Whenever Paxos acquires a new gold bar, it mints a corresponding amount of PAXG tokens; conversely, burning PAXG redeems an equivalent amount of gold or fiat currency. All held assets are audited monthly by an independent third party and regulated by the New York State Department of Financial Services to ensure transparency and trust.

Main Features of PAX Gold

PAX Gold combines the best of physical gold and digital assets through several outstanding features:

• Asset-backed security: Each PAXG token is backed by one ounce of LBMA-certified gold stored in an insured vault.
• Fractional Ownership: Investors can purchase and trade fractional amounts of gold, lowering the entry barrier.
• Regulatory Oversight: Paxos operates under the NYDFS trust charter and publishes monthly reserve proofs on-chain.
• ERC-20 compatibility: PAXG seamlessly integrates with DeFi protocols, wallets, and exchanges within the Ethereum ecosystem.

##Benefits of PAX Gold for Crypto Investors PAXG offers a range of advantages compared to traditional gold and pure stablecoins:

1. High liquidity: Trade gold-backed tokens 24/7 on exchanges like Gate without worrying about transportation or storage.
2. Cost efficiency: Avoid high storage and insurance costs associated with physical gold bars.
3. Transparency: Verify the gold reserves on the chain at any time using Paxos' proof tools.
4. Deflation Hedge: As a gold-backed token, PAXG can serve as a barrier against fiat currency inflation and the volatility of the crypto market.

##How to Buy and Trade PAXG on Gate Gate supports PAXG spot trading, with deep liquidity and competitive fees. Start trading PAX Gold.

1. Log in to your Gate account or if you are a new user, please register.
2. Navigate to the PAXG/USDT trading page on Gate.
3. Enter the amount of PAXG you wish to purchase to place a buy order; the minimum order starts at 0.01 PAXG.
4. Confirm the transaction; your PAXG will arrive in your Gate wallet immediately.

Gate will begin supporting PAX Gold spot trading on March 21, 2025, at 08:00 UTC, ensuring you can access this gold-backed token without interruption.

##Conclusion PAX Gold (PAXG) bridges the gap between traditional gold investments and modern blockchain innovation. By answering the question "What is PAX?" and demonstrating how Paxos extends trust from digital dollars to physical gold, PAXG becomes an appealing, transparent, and accessible asset for crypto investors. Ready to add exposure to real assets to your portfolio? Trade PAXG on Gate today and ensure you have a part of digital gold.

Author: Blog Team *This content does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions. *Please note that Gate may restrict or prohibit the use of all or part of its services in restricted locations. For more information, please read the user agreement.