Who is Paxos, and what do they offer?

Paxos is redefining financial infrastructure by using blockchain solutions to tokenise, custody, trade and settle assets, enabling the trustworthy and instantaneous movement of any asset at any time. After launching the first regulated crypto exchange, Paxos issued the world’s first regulated gold-backed token, Pax Gold, in 2019. 

Pax Gold is a fully collateralised, insured and US-regulated commodity-backed stablecoin that tracks the real-time value of the gold price. One PAXG token is backed by one fine troy ounce of a 400-ounce gold bar, stored in London Gold Vaults. Pax Gold is for anyone looking to invest directly in gold without the custody and insurance burdens of physical ownership. 

Gold-backed crypto assets, how did we get here?

Throughout history, investors have looked to protect their wealth in times of inflation by buying assets that either keep up with inflation or beat it. Certain assets offer protection against the risk of rising inflation - these assets are known as “inflation hedges”. To this day, gold still holds the crown as the most successful inflation hedge in history. 

Gold is an asset independent of any fiat currency, government, or stock - for this reason, it is also viewed as a universal safe haven asset.

When markets and geopolitical situations are unpredictable, investors flock to gold to minimise the risk of losing capital and savings. With global political tensions evolving so quickly, investors need and want access to gold at the click of a button. However, this precious metal can be extremely expensive to store and difficult to transfer. 

Until now…

With the creation of gold-backed crypto assets, like Pax Gold, it is now easier, safer, and faster than ever to own and trade physical investment-grade gold. Pax Gold provides customers with the benefits of physical ownership while still allowing for the speed and mobility of a digital asset. The desire to own physical gold instantaneously upon order execution is a promise that can only be realised through a digital asset and blockchain technology. This low barrier to entry and ease of use drives the purchasing patterns of Pax Gold, with more than 19 000 individual wallets holding Pax Gold, 18 500 more than its closest competitor.

What are the benefits of having physical assets on the blockchain? 

Highly accessible and liquid
By being built on a blockchain, physical asset-backed tokens can easily be moved or traded anywhere in the world, at any time, with real-time spot prices. With low investment minimums, anyone can own a fraction of a physical asset. Trading physical assets don’t take days to settle, as could be the case with ETFs or even physical assets themselves.

Cost-effective

Physical asset-backed tokens offer investors a cost-effective way to own the underlying asset. 

Example

Owning Pax Gold means you don’t have to worry about physically holding or storing the gold and the expenses that come with it. Not only that, but PAXG also offers lower custody fees than other gold tokens and gold ETFs. 

‍
Fractional ownership

The tokenisation of physical assets makes it possible for fractional ownership. 

Example

Pax Gold makes it possible to buy smaller amounts of gold (0.01 troy ounce) instead of buying an entire gold bar. This allows individuals to gain exposure to gold who previously couldn’t due to high minimum investment requirements.

Identifiable

Due to the immutable features of blockchain technology, physical asset-backed tokens can be safely tracked and matched to their owners.

Example

1 PAX Gold token represents 1 fine troy ounce of an individual gold bar. Matching serial numbers found on both the digital token and gold bar make each token’s asset-backed nature verifiable. As part of this strategy, the PAXO’s system provides a tool to look up the serial number and information about your gold by entering your Ethereum wallet address on the Pax Gold lookup tool.

A New Age is Here

While gold may be a centuries-old currency, its benefits have no expiry date. You no longer have to restrict yourself to just buying physical gold, like coins or bullion, when investing in gold has been updated and modernised by Paxos Gold.

Altify allows you to effortlessly gain exposure to gold through Pax Gold, a US-regulated and insured ounce of gold that sits on a blockchain.