Paxos Gold (PAXG) Review 2026: Regulated Gold on Ethereum

Pax Gold (PAXG) is a gold-backed token issued by Paxos. Each token represents one fine troy ounce of gold stored in LBMA vaults in London, and Paxos Trust Company holds that gold in custody. Reports say PAXG launched in September 2019 as an ERC-20 token on Ethereum.

Paxos describes itself as regulated blockchain infrastructure for banks, brokerages and platforms. It says it issues PYUSD, USDG and PAX Gold, and has been prudentially regulated since 2015. Its homepage lists oversight from the OCC, the Monetary Authority of Singapore and Finland's FIN-FSA under MiCA, plus a conditional SEC clearing agency registration for a separate entity in May 2026.

PAXG is a token for holding gold on-chain rather than a DeFi protocol with yield or pools. It suits people who want gold exposure that moves like a crypto asset. Its security depends on a regulated issuer rather than on code alone.

Paxos issues PAXG as a token on Ethereum. For each token created, one fine troy ounce of gold is held in LBMA vaults in London, with Paxos Trust Company acting as custodian. Holders own the underlying physical gold, according to the project description.

Because the token is an ERC-20, it can move between wallets and trade on exchanges that support it. Its price tracks spot gold, so it rises and falls with the market. Newcomers can think of it as a digital receipt for a specific amount of vaulted metal that settles quickly.

Paxos says it publishes audits of its gold holdings and the circulating supply on its website. Those reports are the main way holders can check that supply matches the metal in custody.

Paxos does not publish a PAXG fee schedule in the material reviewed. Costs would depend on where you trade the token, for example exchange spreads and commissions, plus any issuance or redemption fees Paxos applies to direct customers.

The DeFi data describes PAXG as a cost-effective way to own gold, but it gives no figures. One customer review of the Paxos site mentions large markups when converting small gold amounts through dealers, so check redemption terms and spreads first. Network gas fees on Ethereum would also apply to transfers.

PAXG relies on Paxos Trust Company holding the gold and on the Ethereum token contract. If the custodian failed or mismanaged reserves, holders would be exposed. Paxos is regulated through several entities, and public reporting says it publishes audits of gold holdings and supply, but DeFi data lists no smart-contract audits for the token.

The homepage states that Paxos has been prudentially regulated since 2015, with oversight from the OCC, the MAS, the FIN-FSA under MiCA, and a conditional SEC clearing agency registration in May 2026. The sources reviewed do not mention any hack or incident. Check whether PAXG is available and legal in your jurisdiction, and consider that gold prices can be volatile.

PAXG suits people who want to hold gold in a wallet or trade it alongside crypto, and who accept a regulated company as custodian. It is less suited to anyone who wants a trustless or yield-bearing DeFi product, or who expects low-cost conversion of very small amounts into physical metal.