PAX Gold update: PAXG Live price, price chart, news and markets

Introduction to PAX Gold

PAX Gold (PAXG) is a cryptocurrency backed by gold. It was launched in September 2019 by the creators of Paxos Standard (PAX). PAX Gold operates on the Ethereum blockchain as an ERC-20 token, allowing traders to easily invest in gold on various exchanges.

The main aim of PAX Gold is to improve the tradability of gold. Physical gold is not easily divisible or transportable. To address this limitation, Paxos Standard created a cryptocurrency fully backed by gold. The official whitepaper explains that PAX Gold enables investors to buy even the smallest amounts of gold through the cryptocurrency, removing any minimum buy limits for the commodity.

Unique Features of PAX Gold

PAX Gold distinguishes itself from other ERC-20 tokens by being backed by an established commodity. Its primary objective is to make gold investment more accessible.

According to the official whitepaper, a significant portion of the over USD 3.5 trillion worth of gold available today is earmarked for investment. However, this portion is largely inaccessible to small-time investors. This is where PAX Gold comes in. Each PAXG token is backed by a fraction of a London Good Delivery gold bar, which is securely stored in Brink's gold vaults - the approved storage company by the London Bullion Market Association.

By combining the security and liquidity of blockchain-based cryptocurrency with the reputation of gold as a physical commodity, PAX Gold offers a new investment opportunity to traders. The success of PAXG has also inspired other cryptocurrency developers to create their own gold-backed tokens.

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