{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "what-is-pax-gold",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/what-is-pax-gold/",
  "collection": "stablecoins",
  "title": "What is PAX Gold (PAXG)? Gold tokens vs dollar stablecoins",
  "description": "Understand PAXG’s allocated-gold reference and redemption conditions, and why a token backed by gold is not stable in US-dollar terms.",
  "aliases": [
    "what is pax gold",
    "What is PAX Gold (PAXG) Gold tokens vs dollar stablecoins"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:26:58.461Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "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.",
    "claimId": "what-is-pax-gold-quick-answer",
    "sourceIds": [
      "x425-sc-paxg",
      "x425-sc-paxg-terms"
    ]
  },
  "keyFacts": [
    {
      "label": "Reference",
      "value": "One PAXG corresponds to one fine troy ounce of the specified gold.",
      "sourceIds": [
        "x425-sc-paxg-terms"
      ],
      "id": "reference",
      "claimId": "what-is-pax-gold-fact-reference"
    },
    {
      "label": "Price",
      "value": "Gold prices can change against national currencies.",
      "sourceIds": [
        "x425-sc-paxg-terms"
      ],
      "id": "price",
      "claimId": "what-is-pax-gold-fact-price"
    },
    {
      "label": "Redemption",
      "value": "Physical or other issuer conversion routes have eligibility and operational conditions.",
      "sourceIds": [
        "x425-sc-paxg-terms"
      ],
      "id": "redemption",
      "claimId": "what-is-pax-gold-fact-redemption"
    }
  ],
  "prerequisites": [
    "cash-backed-stablecoins"
  ],
  "sections": [
    {
      "id": "allocation",
      "heading": "An allocated-gold claim differs from a dollar claim",
      "sourceIds": [
        "x425-sc-paxg-terms",
        "x425-sc-paxg"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "lookup",
      "heading": "Know what an allocation lookup covers",
      "sourceIds": [
        "x425-sc-paxg",
        "x425-sc-paxg-terms"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "delivery",
      "heading": "A small token balance is not a delivered gold bar",
      "sourceIds": [
        "x425-sc-paxg-terms"
      ],
      "paragraphs": [
        "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."
      ]
    }
  ],
  "faq": [
    {
      "question": "Is PAXG a one-dollar stablecoin?",
      "answer": "No. Its reference is a quantity of gold, whose dollar price can move. Gold backing and dollar-price stability are different properties.",
      "sourceIds": [
        "x425-sc-paxg-terms",
        "x425-sc-paxg"
      ]
    }
  ],
  "claims": [
    {
      "id": "what-is-pax-gold-quick-answer",
      "articleSlug": "what-is-pax-gold",
      "statement": "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.",
      "sourceIds": [
        "source-23727df2c2a643dc",
        "source-f672b7986d07210e"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-23727df2c2a643dc",
          "locator": "Allocated gold; allocation lookup"
        },
        {
          "sourceId": "source-f672b7986d07210e",
          "locator": "Gold allocation; redemption; risks"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "PAXG allocated gold, lookup scope and conversion conditions checked. 0.5 PAXG = 0.5 fine troy ounce; currency risk retained."
      }
    },
    {
      "id": "what-is-pax-gold-fact-reference",
      "articleSlug": "what-is-pax-gold",
      "statement": "Reference: One PAXG corresponds to one fine troy ounce of the specified gold.",
      "sourceIds": [
        "source-f672b7986d07210e"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-f672b7986d07210e",
          "locator": "Gold allocation; redemption; risks"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "PAXG allocated gold, lookup scope and conversion conditions checked. 0.5 PAXG = 0.5 fine troy ounce; currency risk retained."
      }
    },
    {
      "id": "what-is-pax-gold-fact-price",
      "articleSlug": "what-is-pax-gold",
      "statement": "Price: Gold prices can change against national currencies.",
      "sourceIds": [
        "source-f672b7986d07210e"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-f672b7986d07210e",
          "locator": "Gold allocation; redemption; risks"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "PAXG allocated gold, lookup scope and conversion conditions checked. 0.5 PAXG = 0.5 fine troy ounce; currency risk retained."
      }
    },
    {
      "id": "what-is-pax-gold-fact-redemption",
      "articleSlug": "what-is-pax-gold",
      "statement": "Redemption: Physical or other issuer conversion routes have eligibility and operational conditions.",
      "sourceIds": [
        "source-f672b7986d07210e"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-f672b7986d07210e",
          "locator": "Gold allocation; redemption; risks"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "PAXG allocated gold, lookup scope and conversion conditions checked. 0.5 PAXG = 0.5 fine troy ounce; currency risk retained."
      }
    }
  ],
  "sources": [
    {
      "id": "x425-sc-paxg",
      "label": "PAX Gold",
      "publisher": "Paxos",
      "url": "https://www.paxos.com/pax-gold",
      "locator": "Allocated gold; allocation lookup",
      "note": "One fine troy ounce backing and allocation lookup limits for custodial holders.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:09.498Z",
      "contentSha256": "92b0fadbd330d01fa4df9f12401b84799a2ad26f47e69bb590db17d96b843a94",
      "recordId": "source-23727df2c2a643dc"
    },
    {
      "id": "x425-sc-paxg-terms",
      "label": "PAX Gold terms",
      "publisher": "Paxos",
      "url": "https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions",
      "locator": "Gold allocation; redemption; risks",
      "note": "Holder rights, eligible redemption routes and restrictions for physical gold conversion.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:09.633Z",
      "contentSha256": "21fbbe1ad6e376a2913db25cdcfd459d842348e4edf6b8ed49575213324e0b62",
      "recordId": "source-f672b7986d07210e"
    }
  ],
  "related": {
    "articles": [
      "stablecoin-currency-risk",
      "tokenized-money-market-funds",
      "stablecoin-reserve-reports",
      "what-is-frxusd"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees 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/"
}