What is PAX Gold?
PAX Gold is a special gold-backed cryptocurrency, where each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. In fact, if you hold PAXG, you own a physical gold which is in custody by Paxos Trust Company. It was founded by Charles Cascarilla, a CEO of both Paxos Standart and Pax Gold.
The Paxos company is regulated by the New York State Department of Financial Services and the DFS. According to Paxos whitepaper, PAXG aims to allow users to buy, trade and exchange gold virtually with minimum problems.
PAXG protocol is created on the Ethereum blockchain but still it can be launched on other blockchains. It is secured by the proof-of-work (PoW) mechanism.
PAXG equals 1 oz of gold. It is an ERC-20 token which can be traded anywhere. Moreover, PAXG is the only gold-backed token that can be redeemed for LBMA-accredited Good Delivery gold bullion bars or for USD. So, you can always convert your PAXG either for fiat or physical gold.