LearnAsset ClassesTokenized Gold
Beginner5 min read

Tokenized Gold

Physical gold from London vaults. On-chain. Fractional. Transferable in 30 seconds.

Gold Has a Problem

Physical gold is one of the oldest stores of value on earth. But owning it has always required:

  • A dealer (with markups and minimum purchases)
  • Storage (a vault, with fees)
  • Insurance (more fees)
  • Slow transfer (physically moving gold is not fast)

Gold ETFs solved some of this but introduced a new problem: you do not own the gold, you own shares in a fund that owns gold. You cannot take delivery. You cannot transfer it to someone else at midnight on a Sunday.

Tokenized Gold Solves All of It

A tokenized gold token represents ownership of physical gold held in a regulated vault. Each token is backed by a specific weight of gold — typically one troy ounce or a fraction of one.

The Issuers on Terminal One

PAX Gold (PAXG) — Each PAXG token represents one troy ounce of LBMA-standard gold held in Brink''s vaults in London. Issued by Paxos, a regulated financial institution. Redeemable for physical gold.

Tether Gold (XAUT) — Each token represents one troy ounce of gold on a London Good Delivery bar. Issued by Tether. Holders can request physical delivery.

The Advantages

  • Fractional ownership — Buy $50 worth of gold instead of a full ounce (~$3,000)
  • Instant transfer — Send gold to anyone in the world in seconds
  • 24/7 liquidity — Trade any time, no market hours
  • No storage fees (built into the token price spread)
  • Verifiable — The vault audits are public and on-chain
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