# What is PAX Gold (PAXG)? Gold tokens vs dollar stablecoins

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.

Evidence: [PAX Gold](https://www.paxos.com/pax-gold); [PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions)

Canonical: https://degreesofsatoshi.com/encyclopedia/what-is-pax-gold/
Published: 2026-10-02
Substantively modified: 2026-10-02
Independently verified by an automated reviewer: 2026-10-02T19:26:58.461Z
Data current through: 2026-10-02

AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied.

## Key facts

- **Reference:** One PAXG corresponds to one fine troy ounce of the specified gold. ([PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions))
- **Price:** Gold prices can change against national currencies. ([PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions))
- **Redemption:** Physical or other issuer conversion routes have eligibility and operational conditions. ([PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions))

## 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.

Evidence: [PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions); [PAX Gold](https://www.paxos.com/pax-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.

Evidence: [PAX Gold](https://www.paxos.com/pax-gold); [PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions)

## 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.

Evidence: [PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions)

## Questions

### 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.

Evidence: [PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions); [PAX Gold](https://www.paxos.com/pax-gold)

## Claims and scope

### what-is-pax-gold-quick-answer

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: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null}

### what-is-pax-gold-fact-reference

Reference: One PAXG corresponds to one fine troy ounce of the specified gold.

Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null}

### what-is-pax-gold-fact-price

Price: Gold prices can change against national currencies.

Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null}

### what-is-pax-gold-fact-redemption

Redemption: Physical or other issuer conversion routes have eligibility and operational conditions.

Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null}

## Sources

- [PAX Gold](https://www.paxos.com/pax-gold) — Paxos. One fine troy ounce backing and allocation lookup limits for custodial holders. Locator: Allocated gold; allocation lookup. Retrieved: 2026-10-02T18:51:09.498Z.
- [PAX Gold terms](https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions) — Paxos. Holder rights, eligible redemption routes and restrictions for physical gold conversion. Locator: Gold allocation; redemption; risks. Retrieved: 2026-10-02T18:51:09.633Z.

## Revision history

- 2026-10-02: First publication after primary-source research and separate automated verification.

## Cite this entry

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/