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Is PAXG Based on Ethereum (ERC20)

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PAX Gold is a gold-backed stablecoin. It was built to mirror the price of gold, and is pegged to an equivalent value of gold reserves. However, is PAXG an ERC20 token? Let’s find out below.

Is PAXG ERC20?

Yes. PAXG is an ERC-20 token. 

Pax Gold (PAXG) is a crypto token backed by Gold and built on the Ethereum blockchain. Like most tokens on the Ethereum network, PAXG adheres to the ERC-20 token standard. 

What makes PAXG unique?

The PAX Gold is one of the few cryptocurrencies purely backed by gold. Launched by Charles Cascarilla in 2019, PAXG trades in over 30 crypto exchanges, lending channels, and wallets. 

Also, PAXG is regulated by the New York State Department of Financial Services, which oversees the pricing, quantity, and supply of PAXG.  

Low or No fees

PAXG has cheaper fees for transactions on its blockchain and activities extended to the Ethereum network. If you create or redeem PAXG, you’ll pay between 0.03% to 1% depending on the volumes traded on your Paxos wallet.

For owning PAXG, you also pay zero storage fees and only about 0.02% on all Ethereum fees. 

Near Instant Settlements

Most on-chain PAXG transactions are settled immediately. If you create PAXG tokens on the Paxos platform, you’ll receive the tokens delivered within 24 hours or less. However, accounts with huge transactions may have to wait slightly longer.  

An affordable way to enter into gold trading

PAX Gold is an excellent way for new and experienced investors to invest in Gold. The PAXG token has a value equivalent to 400 troy ounces of the London Good Delivery gold bar. PAXG lets you enjoy exposure to small portions of Gold in your portfolio. 

Unlimited Coin Supply

The quantity of PAXG coins in circulation depends on the number of users holding them.

Owning PAXG tokens is equivalent to owning the underlying asset. So, every time you buy these tokens, you introduce a new coin into the PAXG network.

At this writing, there were a total of 339,687 PAXG in circulation. 

Redeemable

You can redeem your token for the dollar equivalent of current gold prices. PAXG is the first gold crypto asset with the London Bullion Market Association (LBMA) accreditation. 

Is PAXG A Security Token?

Yes. PAX Gold is a security token. 

PAXG is a digital asset that mirrors your right to own an equivalent amount of Gold. For example, as of this writing, 1 PAXG token equals 1 fine troy ounce of Gold. So, 1 PAXG token is worth about $1,792.31. 

Unlike most cryptos, PAXG is minted through tokenization. The number of PAXG tokens in circulation increases only when new users join the Paxos platform.

Moreover, PAXG is the first security token that allows retail traders to participate in owning and trading. 

Note that PAXG is managed by Paxos and regulated by the New York State Department of Financial Services.

The NYSDFS safeguards investors’ money by ensuring the amount of Gold in reserves remains equivalent to the number of PAXG tokens in circulation.  

Can You Stake PAXG?

You can stake PAXG.

The three main ways of earning interest on your PAXG are:

  • Staking
  • Yield farming, and
  • Lending.

Staking PAXG

Let’s explore how staking PAXG works.   

When you stake PAXG, you store your token on the platform and earn more PAXG token or Gold as a reward. You can also stake your PAXG on Coinbase, Nexo, YouHodler, Kraken, and Binance.

In staking platforms, you earn about 5% APY on your staked PAXG. Always compare the different platforms to see where you can get the best reward and other benefits. 

Pros of Staking PAXG

  • You become an active participant in securing the blockchain. Staking verifies transactions on the PAXG network and mines new blocks which grow the blockchain.
  • Staking can earn you passive income from your crypto investment. You can earn rewards of over 10% from some staking platforms. Also, it’s a great way to earn from the value of Gold in the long run. 
  • PAXG can diversify your crypto investment portfolio. As you stake PAXG, you find opportunities. For instance, you can trade PAXG for other cryptos. 

How Many PAXG Coins Are There?

As stated earlier, there are only 339,687 PAXG coins in circulation at this writing. PAX Gold has no limit on coin supply.

Is PAXG Gold Real Gold? 

PAXG isn’t real Gold. It is a security token backed by Gold. Therefore, owning PAXG means owning rights to the underlying asset.

You can always convert your PAXG token into physical gold if you want.

To get physical Gold, you need authorization from the NYSDFS and the Paxos gold reserves. They will give you gold amounts similar to the value of the PAXG token you’d like to convert.

What Other Crypto Are Backed By Gold?

There are plenty of cryptocurrencies backed by Gold in the markets. Here are our top three cryptos:

Tether Gold (XAUT)

The XAUt is part of the stablecoin Tether and is backed by gold. XAUt allows you to trade other traditional assets like ETFs, CFDs, and more. You can view the amount of Gold you own via XAUt. Other features include:

  • You can transfer XAUt between two on-chain wallets.
  • You can redeem your XAUt for physical Gold, which they will deliver to you within Switzerland.
  • XAUt is an ERC20 running on the Ethereum network but built on the TRON blockchain. 

Gold Coin (GLC)

The Gold Coin is another gold-backed ERC20 token. You can use it on any Ethereum wallet. The issuer of the Goldcoin is Goldcoin.com, and you can exchange it on CryptoExchange.com. Also, you can purchase GLC from Gold Coin ATMs. Extra features of GLC are:

  • You can mine GLC like Bitcoin or Litecoin via PoW.
  • It supports scaling on both on-chain and off-chain methods.
  • You can convert GLC to fiat currency through exchanges.

Perth Mint Gold Token (PMGT)

The PMGT gets its gold-backing from Gold stored in Perth Mint’s central vaults in Western Australia. It has a certificate ratio of 1:1, which allows investors holding it to trade the certificates for tokens or fiat. 

Investors enjoy no fees on all transactions, including storage and management. It comes with other features:

  • It allows for OTC trades in gold markets.
  • You can redeem a PMGT for any size of Gold, from an ounce to 400 ounces of bars.
  • It offers an open publication for all to see. 

Which Crypto Is Backed By Silver?

The top three cryptos backed by silver include:

  • SilverToken (SLVT)
  • SilverCoin (SC)
  • Silver Stonks (SSTX)

Final Thoughts

PAXG is an ERC20 gold-backed stablecoin. It is a security token because it is based on gold, a security. It mirrors the price of gold, and has no coin limit.

https://www.investopedia.com/terms/s/security-token.asp

https://paxos.com/paxgold/

https://www.finder.com.au/how-to-earn-pax-gold