Tokenized Gold:
XAUT vs PAXG
Over $1.3B in gold is tokenized on-chain. But a token is only as good as the gold behind it — and the custody chain that connects them. We compare the two dominant products: Tether Gold (XAUT) and Paxos Gold (PAXG).
Both XAUT and PAXG are backed 1:1 by London Good Delivery gold bars. The critical difference is custody governance: PAXG is issued by a NY DFS-regulated trust with segregated custody and monthly attestations. XAUT is issued by a BVI entity with less regulatory oversight and quarterly (non-Big 4) attestations.
The Gold Tokenization Custody Chain
Physical Gold Bars
London Good Delivery bars weighing ~400 troy ounces each. Refined by LBMA-accredited refiners to 995+ fineness.
LBMA Vault / Custodian
Gold is stored in high-security vaults operated by Brink's, Malca-Amit, or equivalent custodians in London or Switzerland. Each bar has a unique serial number.
Issuer Trust / SPV
The token issuer (Paxos Trust or TG Commodities) holds ownership of the gold through the custodian. For PAXG, this is a regulated NY trust. For XAUT, it's a BVI commodity entity.
On-Chain Token
Each token represents exactly 1 troy ounce of fine gold. Holders can look up the specific gold bars allocated to their tokens via bar lookup tools.
XAUT vs PAXG: Full Comparison
| Category | XAUT (Tether Gold) | PAXG (Paxos Gold) |
|---|---|---|
| Issuer | Tether (TG Commodities) | Paxos Trust Company |
| Market Cap | ~$750M | ~$550M |
| Gold Standard | London Good Delivery | London Good Delivery |
| Vault Location | Switzerland | London LBMA vaults (Brink's) |
| Minimum Purchase | 1 token (~1 oz) | 0.01 PAXG (~$26) |
| Backing | 1 token = 1 troy oz fine gold | 1 token = 1 troy oz fine gold |
| Bar Lookup | Yes — TG Commodities portal | Yes — Paxos bar lookup tool |
| Attestation | Quarterly (not Big 4) | Monthly (independent auditor) |
| Regulator | None (BVI entity) | NY DFS (regulated trust) |
| Redemption | Physical gold (50+ XAUT minimum) | Physical gold or USD |
| Chains | Ethereum, Tron | Ethereum, Solana |
| Segregated Custody | Not publicly confirmed | Yes — NY DFS regulated trust |
Data based on public disclosures as of February 2026. Market cap figures approximate. This is not financial advice.
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