Traditionally, holding gold required either a physical purchase and storage or buying it as a commodity on an exchange. However, thanks to the wonders of tokenisation, real-world assets like gold can now be tokenised and traded effortlessly. With our Moneybrain app, purchasing gold is as simple as a few clicks. By acquiring a PAXG token, you can own gold securely stored in the same vaults used by major banks, blending portability and ease with traditional commodity investments.
With one PAXG coin being backed by one fine Troy ounce of gold, the entry point to gold bullion has never been lower, with the service and custody of the gold being held in the London Bullion Market Association (LBMA) vaults. PAXG (Paxos Gold) is the tradeable gold equivalent token from Paxos Trust Company.
Who is Paxos?
Paxos Trust Company LLC is a New York limited-purpose trust company regulated by The New York State Department of Financial Services and recognised as a Major Payment Institution by the Monetary Authority of Singapore. Paxos was the first US-based blockchain infrastructure platform to secure this licence, underscoring Paxos as an industry leader in the space. More recently, they issued the PYUSD stablecoin from PayPal.
What is the London Bullion Market Association?
The London Bullion Market Association (LBMA) is the global authority for the precious metals market, setting standards for the quality, integrity, and secure storage of gold and other bullion. Recognised worldwide, the LBMA ensures that gold traded under its certification meets strict criteria for purity and provenance, giving investors confidence in their assets.
So, can I buy this PAXG and exchange it for Gold Bullion, or is it only sellable via the app?
Yes, as a PAXG holder, you are entitled to redeem physical gold. Each token represents one fine troy ounce of gold stored in LBMA vaults, fully backed and meeting strict industry standards. While Paxos does not offer direct redemption for single-ounce bars, you can redeem a London Good Delivery gold bar by submitting a sell request via the Paxos wallet dashboard on the PAX Gold page. A minimum of 430 PAXG plus fees is required, as these bars typically weigh 370-430 oz.
If you hold less than this amount, you can redeem your PAXG for cash or exchange it for smaller gold denominations through partnered retailers, making PAXG a flexible and secure investment option.
Moneybrain Jargon Buster
We try to keep our articles jargon-free, but sometimes it’s difficult to escape technical terms without becoming too wordy! So, we’ve put together a Jargon Buster for terms we use in this article that might need a second glance:
Tokenisation: The process of converting physical assets (like gold) into digital tokens that represent ownership on a blockchain a bit like fractional shares but in this case each PaxG represents one Troy Ounce.
Troy Ounce: A unit of weight commonly used in the precious metals industry. One Troy ounce is approximately 31.1 grams. It’s different from the regular ounce used in everyday measurements.
Stablecoin: A type of cryptocurrency that is designed to have a stable value, usually by being tied to a reserve asset, like the US dollar or gold.
Major Payment Institution: A company that provides payment services (like handling money transfers) and is regulated by a financial authority, ensuring it meets specific legal standards.
Blockchain: A secure, digital ledger used to record transactions across many computers. It ensures that the records are tamper-proof and can’t be altered without detection.
Serialised Number: A unique identifier assigned to a specific item (in this case, a piece of gold) to track it and verify its authenticity and ownership.