In 2026, as global markets face persistent inflation, geopolitical risk, and currency uncertainty, gold has reasserted itself as a core store of value. By December 2025, spot gold prices climbed above $4,500 per ounce, pushing the estimated total value of above-ground gold beyond $30 trillion. This renewed demand has accelerated interest in tokenized gold, digital assets that bring physical gold onto blockchain networks.
The rapid growth of tokenized gold highlights a broader shift toward blockchain-based ownership of real-world assets. As of 2025, the tokenized gold market has reached a $4.3 billion market capitalization, with over $4.1 billion in monthly on-chain transaction volume and more than 174,000 active holders worldwide. Monthly active wallet activity continues to rise, reflecting increasing demand for gold exposure that is liquid, programmable, and globally accessible. This growth underscores how tokenized gold is evolving from a niche product into a core digital asset class, bridging traditional stores of value with modern financial infrastructure.
Total value of tokenized commodities on-chain | Source: RWA.xyz
Pax Gold (PAXG) is one of the largest and most established tokenized gold products in the market. As of 2025, PAXG has a market capitalization of approximately $1.6 billion, with over 367,000 tokens in circulation, each representing one troy ounce of physical gold stored in professional vaults. Its structure allows investors to gain exposure to gold with the speed, transparency, and programmability of blockchain technology.
What Is Pax Gold (PAXG) Tokenized Gold Crypto and How Does It Work?
PAXG is a regulated, gold-backed digital asset issued by Paxos Trust Company, a New York–chartered trust company overseen by the New York State Department of Financial Services (NYDFS). Each PAXG token represents direct ownership of one fine troy ounce of LBMA-accredited gold stored in secure vaults operated by approved custodians such as Brink’s.
Paxos is a regulated blockchain infrastructure company that enables institutions to tokenize, custody, and settle real-world assets (RWAs) on-chain, serving major clients such as PayPal and Bank of America. As of December 2025, Paxos Gold currently manages $1.59 billion in total on-chain assets, with a net asset value of $4,338 per token and a growing user base of 87,422 holders, reflecting steady adoption and market growth.
Unlike gold ETFs or derivatives, PAXG provides direct ownership of physical gold rather than a paper claim. Each token corresponds to a specific gold bar, and holders can verify the serial number, weight, and purity of their gold through Paxos’s on-chain lookup tools. This structure ensures transparency while eliminating the need for investors to manage physical storage or insurance.
How PAXG Gold Token Works: Tokenization, Custody, and Verification
PAXG operates through a tightly controlled mint-and-burn process designed to maintain a strict 1:1 relationship between tokens and physical gold. Here's an overview of how Pax Gold token works:
1. Gold Allocation: LBMA-accredited gold bars are deposited into regulated vaults operated by Paxos-approved custodians.
2. Token Minting: For every ounce of gold deposited, one PAXG token is minted on Ethereum.
3. On-Chain Verification: Each token is linked to a specific bar, with serial numbers publicly verifiable through Paxos’ audit tools.
4. Redemption or Trading: Holders can trade PAXG on supported exchanges or redeem tokens for physical gold through Paxos, subject to minimum thresholds and fees.
The total supply of PAXG fluctuates as tokens are minted or redeemed, ensuring that the circulating supply always matches the amount of gold held in custody.
Why Investors Use PAXG: 5 Key Benefits of Pax Gold Token
PAXG combines the stability of physical gold with the efficiency of blockchain technology. Key advantages include:
1. Regulatory Oversight: Issued by a NYDFS-regulated trust company with regular third-party audits.
2. Full Physical Backing: Each token corresponds to allocated gold stored in LBMA-approved vaults.
3. High Liquidity: Actively traded across major crypto exchanges with deep liquidity pools.
4. Fractional Ownership: Investors can own small portions of gold without purchasing full bars.
5. Global Accessibility: Transferable 24/7 across blockchain networks without relying on traditional intermediaries.
PAXG appeals to investors seeking gold exposure with strong regulatory backing and transparent custody. It is commonly used by institutions, funds, and individuals looking to hedge inflation, preserve capital, or diversify portfolios without the logistical challenges of physical gold.
While it does not offer the same level of flexibility as crypto-native assets like Tether Gold (XAUT), PAXG’s strength lies in its regulatory clarity, audited reserves, and institutional credibility, making it a preferred option for conservative and compliance-focused investors.
How Does PAX Gold (PAXG) Differ From Physical Gold?
While both PAXG and physical gold derive value from the same underlying asset, they differ significantly in how they are stored, traded, and accessed by investors.
1. Ownership and Access: PAXG represents digital ownership of LBMA-accredited gold stored in secure vaults, while physical gold requires direct possession or third-party storage.
2. Liquidity and Trading: PAXG trades 24/7 on crypto exchanges with instant settlement, whereas physical gold is limited to dealer hours and slower transaction processes.
3. Costs and Storage: PAXG has no storage or insurance fees for holders, while physical gold typically incurs ongoing storage, insurance, and transport costs.
4. Divisibility and Flexibility: PAXG can be divided into fractions as small as 0.000001 oz, making it accessible to smaller investors; physical gold is sold in fixed bar or coin sizes.
5. Verification and Risk Profile: PAXG offers on-chain verification of gold backing but relies on issuer custody, while physical gold provides direct ownership at the cost of logistical and security challenges.
What Is the Difference Between Pax Gold (PAXG) and Tether Gold (XAUT) Gold Tokens?
PAX Gold (PAXG) and Tether Gold (XAUT) both provide blockchain-based exposure to physical gold, but they differ in structure and use case. PAXG is issued by Paxos, a New York–regulated trust company, and emphasizes regulatory oversight, audited reserves, and institutional-grade custody.
XAUT, by contrast, operates under a more flexible framework, prioritizing liquidity and integration within the crypto ecosystem, with broader exchange availability and higher trading volumes. In short, PAXG appeals to investors seeking regulatory clarity and transparency, while XAUT suits those prioritizing liquidity, speed, and crypto-native accessibility.
How to Buy and Trade Pax Gold (PAXG) on BingX
BingX offers a simple and secure way to gain exposure to PAX Gold (PAXG), whether you’re looking to hold gold long term or actively trade price movements. With deep liquidity, low fees, and integrated BingX AI tools, BingX enables both beginners and experienced traders to access tokenized gold efficiently.
Buy, Sell, or HODL PAXG on the Spot Market
PAXG/USDT trading pair on the spot market powered by BingX AI insights
Spot trading is ideal for users who want to own PAXG directly and benefit from long-term gold price appreciation.
1. Access the Spot Market: Log in to BingX and navigate to the PAXG/USDT trading pair.
2. Analyze the Market: Use BingX AI to view real-time trend analysis, support and resistance levels, and momentum indicators to help identify optimal entry points.
3. Place Your Order: Choose a Market Order for instant execution or a Limit Order to buy at your preferred price. Once filled, your PAXG will appear in your spot wallet.
This approach is ideal for investors seeking long-term exposure to gold without the need for physical storage or complex custody arrangements.
Learn more about how to buy Pax Gold in our comprehensive guide.
Long or Short PAXG with Leverage on the Futures Market
PAXG/USDT perpetual contract on the futures market powered by BingX AI
For more active traders, BingX also offers PAXG/USDT perpetual futures, allowing you to profit from both rising and falling gold prices.
1. Open the Futures Interface: Select the PAXG/USDT perpetual contract in the BingX Futures section.
2. Analyze Market Conditions: Activate BingX AI tools to review trend direction, volatility levels, and momentum indicators.
3. Set Your Trade Parameters: Choose your position (Long or Short), select leverage, and define stop-loss and take-profit levels to manage risk effectively.
4. Monitor and Adjust: Track your position in real time, manage funding rates, and adjust risk controls as market conditions change.
In addition to trading PAXG perpetual futures, you can also trade gold futures with crypto directly on the BingX platform.
Futures trading allows experienced traders to capitalize on short-term price movements, but it also carries higher risk due to leverage. Proper risk management is essential.
Why Trade PAXG Tokens on BingX?
BingX offers deep liquidity and tight spreads for efficient PAXG trading, supported by AI-powered tools that help identify trends and optimize entry and exit points. With both spot and futures markets available on one platform, traders can easily switch between long-term exposure and short-term strategies, all while benefiting from 24/7 global market access and reliable execution.
Is It Safe to Buy Pax Gold (PAXG)?
PAX Gold (PAXG) is widely considered one of the safer ways to gain digital exposure to gold, as it is issued by Paxos Trust Company, a regulated entity overseen by the New York State Department of Financial Services (NYDFS). Each token is backed 1:1 by physical gold stored in LBMA-approved vaults, with regular third-party audits and on-chain verification tools that allow holders to confirm backing. These safeguards make PAXG one of the most transparent and institutionally trusted gold-backed tokens available.
Key Risks and Considerations Before Investing in PAXG Tokenized Gold
1. Issuer Risk: PAXG relies on Paxos to maintain custody, redemption, and compliance processes.
2. Regulatory Exposure: While regulated, changes in crypto or commodities regulation could affect availability in certain regions.
3. Blockchain Risk: As an ERC-20 token, PAXG is subject to smart contract, wallet security, and network congestion risks.
4. Redemption Constraints: Physical redemption requires meeting minimum thresholds and may involve fees or processing time.
5. Market Risk: PAXG tracks gold prices closely, meaning its value can fluctuate with macroeconomic conditions.
Conclusion: Should You Buy Pax Gold (PAXG) in 2026?
Pax Gold (PAXG) offers a regulated, transparent way to gain exposure to physical gold through the convenience of blockchain technology. Backed 1:1 by allocated gold and issued by a regulated trust company, PAXG appeals to investors seeking stability, auditability, and long-term value preservation in an increasingly digital financial landscape. Its structure makes it particularly suitable for those who want gold exposure without the logistical challenges of physical storage.
That said, PAXG is not risk-free. Its value remains tied to gold price movements, and investors are still exposed to regulatory, custody, and blockchain-related risks. As with any investment, PAXG should be considered within the context of broader portfolio diversification and risk tolerance. For investors looking to balance stability with accessibility, PAXG can serve as a practical digital alternative to holding physical gold, but it should complement, not replace, a well-diversified strategy.