PAX Gold
PAXG
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
PAX Gold (PAXG) is an established real-world asset (RWA) token issued by Paxos Trust Company, backed 1:1 by allocated physical London Good Delivery gold stored in LBMA-accredited vaults. The asset benefits from significant institutional adoption, strong liquidity, a $1.79B-$2.06B market cap, and formal regulatory oversight under the New York Department of Financial Services (NYDFS), accompanied by monthly reserve attestations and clean smart contract audits (including a 93.25 AAA rating on CertiK Skynet). However, as a regulated centralized token, it exhibits inherent structural trade-offs: governance is entirely centralized under Paxos without decentralized DAO mechanisms, smart contracts feature upgradeable proxy architecture with administrative freeze/seize capabilities, and traditional community governance metrics remain minimal. Security analysis notes a 2025 $26.5 million NYDFS regulatory settlement against Paxos regarding AML/KYC compliance overhauls; because this administrative action was remediated without user asset loss, contract impairment, or insolvency, it does not trigger red-flag score capping. Overall, PAXG serves as a robust, highly liquid gold-exposure instrument with balanced smart contract security, though constrained by centralized issuer counterparty reliance.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About PAX Gold (PAXG)
PAX Gold (PAXG) is an ERC-20 real-world asset (RWA) token issued by Paxos Trust Company, a financial institution regulated by the New York Department of Financial Services (NYDFS). Operating primarily on the Ethereum blockchain, each PAXG token represents fractional ownership of one fine troy ounce of physical London Good Delivery gold stored in LBMA-accredited vaults. The token utilizes an elastic supply model where tokens are minted or burned 1:1 against physical gold deposits and redemptions, providing holders with direct redeemability and serial-number verification.
The project is overseen directly by Paxos executive leadership, including co-founder and CEO Charles Cascarilla, rather than a decentralized autonomous organization (DAO) or community governance model. Paxos publishes regular monthly reserve attestations verifying the physical gold reserves backing circulating tokens. The smart contract architecture incorporates an upgradeable proxy pattern audited by security firms including CertiK, ChainSecurity, Nomic Labs, and Trail of Bits, with no recorded smart contract exploits or protocol depegs.
While the token operates under regulatory oversight, its structure introduces counterparty and centralization risks, including administrative freeze and seize capabilities retained by the issuer. In 2025, the NYDFS issued a $26.5 million fine against Paxos due to deficiencies in its anti-money laundering (AML) framework and customer due diligence compliance, mandating comprehensive overhauls of the company's internal compliance programs.