As the digital transformation of the financial market accelerates, Real-World Asset Tokenization (RWA) is emerging as a new paradigm in asset management. In particular, gold, which has functioned as a means of storing value for thousands of years, has been combined with modern blockchain technology to be reborn as an innovative digital asset called PAX Gold (PAXG). PAX Gold is not a simple price-following derivative or synthetic asset, but an asset-backed token that implements legal ownership of actual physical gold on the blockchain.1 PAXG, issued by Paxos Trust Company, complies with the ERC-20 standard of the Ethereum blockchain, and each...
Investment View
This will create an environment in which more institutional investors can incorporate PAXG into their portfolios without legal uncertainty in the future.5 Currently, PAXG is mainly distributed on Ethereum, but formal expansion to other high-performance blockchains such as Solana, Binance Smart Chain (BSC), and Polygon is expected to accelerate.31 As PAXG advances into networks with low fees and fast transaction speeds, it will be able to use gold-based micropayments and cross-border remittance services. Utilization will increase.17 Paxos’ partnerships with global payment giants such as PayPal and Mastercard serve as a powerful infrastructure to realize this vision.5 PAXG serves as a...
Pax Gold, or PAXG, is a gold-backed ERC-20 token issued by Paxos Trust Company and is a real asset tokenization project designed to correspond to 1 PAXG equal to 1 fine troy ounce of London Good Delivery gold. The core problem of the white paper is to resolve the structural gap in the gold market, which states that “investment grade physical gold is difficult to own, and ETFs, futures, and unallocated gold are closer to price exposure than ownership,” through blockchain-based ownership and transferability.
Investment View
This report is not investment advice and does not provide price targets. Instead, only the maturity, adoption, and risk scenarios of PAXG are evaluated. PAXG's overall maturity is evaluated at 83.6%.