PAX Gold.
PAX Gold (PAXG) is an ERC-20 token where each unit is backed by one fine troy ounce of a London Good Delivery gold bar. It allows investors to own fractional physical gold on the blockchain, combining the benefits of gold ownership with the liquidity of digital assets.
Increased demand for safe-haven assets and digital gold as a hedge against inflation and traditional financial instability.
The project is centralized, relying entirely on the custodian holding the physical gold, which creates institutional counterparty risk.
Each token represents ownership of specific gold bars stored in Paxos Trust Company vaults, with audits published monthly.
Regulatory changes affecting stablecoins or gold-backed assets and potential custodial failure or physical access restrictions.