Encyclopedia Stablecoins · Entry 315
What is PAX Gold (PAXG)? Gold tokens vs dollar stablecoins
In this article
At a glance
Key facts
| Fact | Detail | Source |
|---|---|---|
| Reference | One PAXG corresponds to one fine troy ounce of the specified gold. | [2] |
| Price | Gold prices can change against national currencies. | [2] |
| Redemption | Physical or other issuer conversion routes have eligibility and operational conditions. | [2] |
An allocated-gold claim differs from a dollar claim
The terms describe fractional ownership of specified-quality gold held in custody. The token is a way to transfer that economic interest through supported infrastructure, not a promise to keep its market price at one dollar.
A hypothetical 0.5 PAXG holding represents half a fine troy ounce under that convention. If the gold price changes, its currency value changes even if the token remains fully backed by the stated quantity of gold.
Know what an allocation lookup covers
Paxos provides allocation information for supported on-chain holdings. A custodial exchange may hold tokens collectively, so a customer’s internal exchange balance is not necessarily represented by a unique public address in that lookup.
Allocation records and reserve reports have defined scopes. They should be read alongside the custody and redemption terms rather than treated as proof that every intermediary holding the token can meet every customer withdrawal.
A small token balance is not a delivered gold bar
Issuer conversion and physical delivery have requirements, eligible-customer conditions and potential fees. Holding a fraction of a token does not imply a warehouse will ship a matching tiny bar on demand.
A holder can also sell through a market, where liquidity, spread and custody affect the realized price. This description uses product documents checked on 2 October 2026 and does not recommend gold exposure or a particular redemption route.
Direct answers
Questions people ask
Is PAXG a one-dollar stablecoin?
No. Its reference is a quantity of gold, whose dollar price can move. Gold backing and dollar-price stability are different properties.
Inspect the evidence
The answer and key facts have stable claim links. These records retain the scope and qualification when reused.
PAX Gold, or PAXG, is a token representing an interest in allocated gold under Paxos’s terms. Each token corresponds to one fine troy ounce of London Good Delivery gold. Its dollar value follows gold-market exposure rather than a one-dollar peg, so it belongs to a different category from dollar stablecoins and can lose value in dollar terms.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.
Link to this claimReference: One PAXG corresponds to one fine troy ounce of the specified gold.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.
Link to this claimPrice: Gold prices can change against national currencies.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.
Link to this claimRedemption: Physical or other issuer conversion routes have eligibility and operational conditions.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.
Link to this claimRevision history
- — First publication after primary-source research and separate automated verification.
Source register
Sources and references
Retrieval dates and locators are recorded individually.- PAX GoldPaxos
One fine troy ounce backing and allocation lookup limits for custodial holders.
Locator: Allocated gold; allocation lookup · Version / scope: Document retrieved 2026-10-02; content hash recorded · Retrieved: 2026-10-02T18:51:09.498ZOpen source - PAX Gold termsPaxos
Holder rights, eligible redemption routes and restrictions for physical gold conversion.
Locator: Gold allocation; redemption; risks · Version / scope: Document retrieved 2026-10-02; content hash recorded · Retrieved: 2026-10-02T18:51:09.633ZOpen source
Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.
Editorial method and correctionsDegrees of Satoshi editorial project. “What is PAX Gold (PAXG)? Gold tokens vs dollar stablecoins.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-pax-gold/