As cryptocurrencies, nonfungible tokens (NFTs) and other digital assets continue to grow in popularity, there is still a place for physical commodities. Gold, specifically, remains one of the strongest physical assets to invest in. Now, the two are pairing up.
PAX Gold (PAXG) is a digital token tied to gold. When looking at a PAX Gold price prediction, it is a promising investment, but what do the next five years look like? PAX Gold has found a way to combine physical gold assets with cryptocurrency, making it attractive to those who have considered investing in digital alternatives but haven’t made the leap.
What is PAX Gold (PAXG)?
PAX Gold is backed by real gold reserves held by the parent company, Paxos. Each token – PAXG – is linked at a 1:1 ratio to one troy ounce of London Good Delivery gold, which is stored and secured in a Brinks Security vault in London.
The Paxos-backed token, PAXG, is also backed by certified gold bars from the London Bullion Market Association (LBMA) and can be exchanged for physical bullion. The beauty of PAX Gold is that it gives investors the ability to store, trade, and sell these valuable assets in the same manner as a digital currency. This helps combat storage concerns, a lack of liquidity, and the high costs associated with physical gold.
Who are the founders of PAX Gold (PAXG)?
PAX Gold is the creation of the Paxos Trust Company. This tech company and financial institution is based out of New York City and specialises in blockchain technology. The founders, Richard Teo and Charles Cascarilla, are both former analysts at major firms (Goldman Sachs and Cedar Hill Capital Partners).
The duo founded Paxos in 2012 and brought PAX Gold to the market in 2019. Paxos has also created the PAX Dollar (USDP), a stablecoin and digital United States dollar. With more than $500 million in total funding, PAX Gold has received outstanding institutional support, further promoting its potential success in the future.
What Makes PAX Gold (PAXG) Unique?
There are two primary things that make PAX Gold unique: regulatory compliance and the physical ownership of gold. That said, there are some tertiary things like traceability, liquidity, and usability that make PAX Gold special.
The first thing that makes PAX Gold so unique is that it allows for ownership of real gold. Fractional ownership makes it possible to own gold without having to contend with the high cost barrier that currently exists with physical gold ownership. Gold is represented as one fine troy ounce of physical, high-quality gold stored in London’s Brink vault.
The second thing that makes PAX Gold unique is its regulatory oversight. Compared to most other tokens, PAXG is heavily regulated by the New York Department of Financial Services. This level of customer protection is uncommon among crypto tokens. That equates to a safer investment experience for users, not to mention greater operational standards that most other tokens can’t match.
How Many PAX Gold (PAXG) Coins are There in Circulation?
A unique aspect of PAX Gold is that there are theoretically an infinite number of tokens that could hit circulation. As of now, however, PAX Gold is considered to be rare among most crypto tokens. It is not uncommon for a token, especially in the meme coin niche, to have more than 100 million or a billion tokens.
Right now, there are 281,726 PAXG tokens in circulation. At a market price of roughly $3,364 per token, the market cap (and fully diluted valuation) of PAXG is roughly $948 million. With most other tokens, we have an idea of the maximum supply, but that hasn’t been determined for PAX Gold yet.
How is the PAX Gold Network Secured?
At the crux of PAX Gold’s network security is the use of smart contracts. PAXG is an ERC-20 token on the Ethereum blockchain. It is largely dependent on the Ethereum blockchain for security, but Paxos has the ability to freeze tokens for compliance reasons.
Equally as important, regular auditing and transparency help keep the PAX Gold network safe. Every month, Withum, a third-party accounting firm, verifies the amount of gold held in reserve to back the supply of PAXG tokens. These attestations give investors peace of mind that these tokens have actual backing.
Regulatory oversight is much stronger for PAX Gold as well. Its parent company, Paxos Trust Company, is a regulated financial institution registered with the New York State Department of Financial Services (NYDFS). Paxos is also required to hold all customer assets in bankruptcy-remote, segregated accounts, separate from corporate assets.
PAX Gold Ecosystem
Unlike most other blockchain technologies, the PAX Gold ecosystem is not necessarily devoted to the development of decentralised applications (dApps). There is, however, an NFT marketplace that allows users to buy, sell, and trade digital assets.
PAX Gold is backed by physical gold and attached to gold market prices. There is no need for storage of these physical assets, but tokens can be redeemed for physical gold. With regular auditing and the physical backing, PAX Gold’s ecosystem may seem somewhat limited but has substantially higher value than even some of the most comprehensive blockchain ecosystems.
FAQs
What is the history of PAX Gold?
PAX Gold is the product of Paxos Trust Company. With $65 million in funding, it launched the first regulated gold-backed digital token in September 2019. Paxos, founded by Charles Cascarilla and Rich Teo, has also branched out into other areas in the cryptocurrency realm.
What can PAX Gold be used for?
The biggest use of PAX Gold (PAXG) is that it allows for investing in gold. Through fractional ownership, not to mention a more liquid way to invest in gold, PAX Gold removes the barriers that previously prevented gold ownership. Holders can also redeem their tokens for actual physical gold bars, fiat currency, or unallocated gold.
What are the highest and lowest prices for PAX Gold (PAXG)?
PAX Gold has remained largely stable since its launch in September 2019. It achieved its all-time lowest price just two months later in November 2019, hitting $1,451 per token. Recently, in June 2025, it achieved its all-time high price of $3,484 per token.
What is the fully diluted valuation of PAX Gold (PAXG)?
To determine the fully diluted valuation of a token, we must take the current market value and multiply it by the maximum supply of tokens. PAX Gold is unique in that there could theoretically be an infinite number of tokens. That said, the total supply as of now is 281,726 tokens. That gives us a fully diluted valuation of just over $948 million.
How do network consensus and validation work on PAX Gold?
PAX Gold uses a proof-of-stake mechanism. This consensus also secures other ERC-20 tokens and provides scalability, energy efficiency, and greater security, especially in the wake of the Ethereum Merge. Transactions are ultimately processed through a network of validators working on the Ethereum blockchain.
How to buy PAX Gold (PAXG)?
There are two primary methods for buying PAX Gold. The first is through a regulated exchange. Exchanges are quite common because they allow access to a litany of different crypto tokens. You can also purchase PAXG directly from Paxos, which also uses the PAXG token. You’ll need to add your PAXG to a wallet, either through an exchange or a “cold wallet” situation.
What is the market cap of PAX Gold?
The market capitalisation of a token is determined by taking the current market price and multiplying it by the number of tokens currently in circulation. PAXG, the native token of PAX Gold, trades for roughly $3,364 per token currently. With a circulating supply of 281,726 tokens, that gives PAXG a market capitalisation of roughly $948 million.
Is it safe to invest in PAX Gold?
One of the biggest factors behind PAX Gold is that it offers regulated ownership of physical gold. Even better, it is regulated by the New York State Department of Financial Services (NYDFS) and is subject to monthly audits. Those two factors put it far ahead of many other digital currencies in terms of regulation and safety.
What affects the PAX Gold price?
A handful of factors impact any cryptocurrency. For PAX Gold, adoption is critical. The more entities that use it, the stronger its general interest will be. The ability of PAX Gold to keep up technologically is imperative as well. Finally, the inherent risk associated with the crypto marketplace is always going to be there.
