Named PAXG for short, this innovative currency acts as a digital asset, with each PAXG token being backed by one fine troy ounce of gold from some of the world’s most secure vaults in London. Paxos guarantees each PAXG token using physical gold bars, meaning that anyone who owns PAXG also legally owns the underlying physical gold, which is simply held in custody by Paxos Trust company until redeemed for physical gold products on Alpha Bullion.
What makes this token unique is its compromise between the stocklike nature of some mining-backed cryptocurrency, and the insurance against market shifts traditionally provided by precious metals. Most cryptocurrencies, although easily stored and traded, are historically volatile assets. “While bitcoin remains the most popular cryptocurrency, it tends to suffer from high volatility in its valuations,” writes Investopedia. “Even its intraday price swings can be wild; it is common to see cryptocurrency moving in excess of 10 percent in either direction within a span of a few hours.” By offering a crypto token backed by a stable asset such as gold, Bullion Exchanges and Paxos hope to offer customers the best of each. This is where the stablecoin name comes into play.
Like gold, PAXG acts as a hedge against market forces. But like bitcoin, it is stored and counted digitally. This means that, with Paxos guaranteeing each token with one ounce of gold, customers will essentially be able to use it interchangeably with physical precious metals without needing access to a personal or rented safe for storage. PAXG will also circumvent the difficulty that comes with shipping out bulky gold products, where customers usually have no choice but to use external shipping services that are often expensive and insecure.
As a Trust company, Paxos also offers more peace of mind to investors than other cryptocurrency exchanges. “Unlike anyone else, this actual token itself is regulated, it was approved by the New York Department of Financial Services, which is the banking regulator in New York,” explained Paxos CEO Charles Cascarilla to Mad Money’s Jim Cramer on September 16th, 2019. “You’re not just trusting us because we say you should, we have oversight.”
Alpha Bullion then makes it easy to redeem PAXG back into physical gold. Here, our simple redemption interface makes it easy to trade your PAXG for any gold product in the Bullion Exchanges store with just a few simple clicks. Alpha Bullion allows PAX Gold holders to redeem in sizes ranging from 1 gram to 1 kilogram, offering more versatility than other options.
Paxos is currently offering a 2% rebate on the first 7000 PAXG tokens sold. This offers customers a unique opportunity to accrue additional value on their precious metal purchases beyond the price of gold itself, an historical first. Sign up today to store your investments using this innovative new take on the time tested gold market.
Alpha Bullion PAXG gold-backed Ethereum (ETH) token