Historically, gold has played a significant role in the global financial system. It is scarce, chemically stable, malleable, beautiful – and universally precious. It has endured as a store of value for thousands of years and remains wildly popular today, with an average of $112.2 billion-worth of gold trades occurring daily through ETFs, derivatives and physical markets.
Gold endures as a preferred safe-haven in crisis, is widely recommended as part of a diversified investment portfolio and continues to be the preferred asset over local currencies for billions of individuals in countries with unstable fiat tender.
At Paxos, we are on a mission to digitize and mobilize the world’s assets. We have a vision for a future where assets can move globally, 24/7, in a frictionless economy. We see gold as being an ideal asset for our efforts as it is uniquely desirable, yet unwieldy; its market value is more than $9 trillion despite being a physically cumbersome and expensive asset to own, store and 3 move.
In this paper, we introduce PAX Gold, a tokenized version of gold that represents real, physical gold. It gives token-holders actual gold ownership in the most secure vaults in the world along with the portability of a digital wallet. We provide some historical context to demonstrate the importance of a modern, digital approach to gold access. Finally, we present details about the infrastructure behind the product, including our structure as a regulated Trust company, the technical design of our smart contracts and other details of our operations.
We have created the easiest way for people to affordably own, hold, trade, lend or move investment-grade, physical vaulted gold – without the worry, cost or inconvenience of physical storage and security. PAX Gold mobilizes and democratizes access to gold globally.PAX Gold Whitepaper