PAXG Market Cap Tops $2B as Tokenized Gold Demand Jumps 450%
PAXG, the Paxos-issued gold-backed token, climbed to $4,997 as tokenized gold demand jumped roughly 450%, lifting market capitalization above $2 billion, Paxos said. The issuer outlined the conversion process: allocated physical gold held in regulated custody is tokenized into PAXG units, with redemption available under Paxos’ terms and reserve attestations intended to match outstanding tokens. The move comes amid a broader flight to safe-haven assets and rising institutional interest in on-chain bullion exposure.
Traders should watch liquidity, exchange spreads and any premiums or discounts to spot gold, since trading venue flows can push token prices away from underlying metal value. Compare features across rivals such as XAUT and review redemption mechanics, fees and custody timelines before reallocating capital. Paxos’ regulatory disclosures may ease counterparty concerns, but reserve attestations and listing liquidity will be key signals as demand grows.