What backs on-chain gold tokens with physical gold?
PAXG is an ERC-20 token on Ethereum, and on-chain transfers also require ETH to pay for gas. PAXG holders can redeem their tokens for physical gold bars or US dollars according to the issuer’s rules. Redemption thresholds and fees are subject to the issuer’s announcements.
The difference between holding gold tokens and physical gold is that tokens can be transferred 24/7 and held in very small fractions, but they also require trust in the issuer.
$PAXG Each token represents 1 troy ounce of physical gold stored in a London vault.
PAXG is an ERC-20 token on Ethereum, and on-chain transfers also require ETH to pay for gas. PAXG holders can redeem their tokens for physical gold bars or US dollars according to the issuer’s rules. Redemption thresholds and fees are subject to the issuer’s announcements.
The difference between holding gold tokens and physical gold is that tokens can be transferred 24/7 and held in very small fractions, but they also require trust in the issuer.
$PAXG Each token represents 1 troy ounce of physical gold stored in a London vault.