Summary
Ketju does not approve PAXG: on 2025-10-11 it traded about 22% below spot gold on Binance, and only verified Paxos customers can redeem tokens to pull the price back to gold. A PAXG token is a warehouse receipt for one fine troy ounce of gold. Paxos Trust Company, N.A., a national trust bank the OCC has supervised since its New York charter converted on 2025-12-12, holds London Good Delivery bars in segregated accounts for PAXG holders. The terms say a holder owns “a pro rata portion of Allocated Gold,” and Paxos shows the serial numbers of the bars behind any address. KPMG attests the reserve each month. On 2025-10-17, PAXG traded several percent above spot gold. Redemption takes a Paxos account, fees, and several business days. The Solana launch of 2026-06-25 does not change who can redeem or how fast, because Solana DEXs only add places to sell. On both chains, Paxos can freeze any address and take its tokens. A client who wants gold is better served by a physically backed gold ETF, whose authorized participants can create and redeem shares every trading day.
Review triggers
- PAXG holds within normal gold-ETF tolerance of spot gold through a later market-stress event
- Paxos opens a way to redeem that is faster, cheaper, or open to holders who are not Paxos customers
- Paxos names a vault operator other than Brink’s, or a monthly attestation shows fewer ounces than tokens, is missed, or changes attestor
- Paxos announces a storage fee under Section 15.2, collected by minting new PAXG
- Paxos issues PAXG on a third chain, or the Solana freeze authority, permanent delegate, or mint multisig changes
- A regulator brings a new AML, sanctions, or supervisory enforcement action against Paxos
Facts
- Verdict
- Not approved
- Type
- Tokenized commodities
- Chains examined
- Ethereum, Solana
- Instruments
- PAXG
- Reviewed
- Last confirmed