# PAX Gold review: Trust Score 78/100 (Solid)

Source page: https://vaultx.llc/reviews/pax-gold · independent VaultX review by Rex · updated 2026-11-12

Regulated gold-backed token with strong compliance but high redemption barriers for small holders

PAX Gold (PAXG) launched in September 2019 by NYDFS-regulated Paxos Trust Company, with each token representing one troy ounce of London Good Delivery gold in vaults. The company publishes monthly third-party attestations confirming reserves and has maintained operations without major security incidents. While Paxos faced 2023 regulatory action over its separate BUSD stablecoin, PAXG was unaffected and continues operating. The main friction point is the 430-token minimum for physical gold redemption, making it impractical for smaller investors despite the product delivering on its core promise of gold-backed stability.

**Red flags**
- Parent company Paxos received SEC Wells Notice and NYDFS order in February 2023 (for separate BUSD product, not PAXG)
- Physical gold redemption minimum of 430 PAXG (~$900k+ value) excludes most retail investors
- Some user reports of slow customer support for complex redemption questions
- Centralized custody model requires trust in Paxos despite blockchain technology

**Green flags**
- Regulated by New York State Department of Financial Services since 2019
- Monthly third-party attestations by Withum confirming gold reserves published continuously
- No security breaches or hacks reported since September 2019 launch
- Listed on major exchanges including Binance, Coinbase, Kraken, Gemini
- Parent company Paxos raised $540M+ from reputable investors including Oak HC/FT
- Doxxed leadership team including CEO Charles Cascarilla
- PAXG operations unaffected by 2023 regulatory actions against separate BUSD product
- Gold bar serial numbers published on-chain for transparency

**Sources**
- Paxos - PAX Gold Official Page https://paxos.com/paxgold/
- Paxos - PAX Gold Launch Announcement (Sept 2019) https://www.paxos.com/2019/09/05/paxos-launches-pax-gold-a-digital-asset-backed-by-physical-gold/
- Paxos - Monthly Attestations https://paxos.com/attestations/
- Paxos - Leadership Team https://paxos.com/leadership/
- Paxos Series D Funding Announcement (Dec 2021) https://www.paxos.com/2021/12/07/paxos-raises-300-million-series-d-led-by-oak-hc-ft/
- NYDFS Press Release on BUSD (Feb 2023) https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202302131
- SEC Commissioner Peirce Statement on Paxos (Feb 2023) https://www.sec.gov/news/statement/peirce-statement-paxos-021323
- CoinGecko - PAX Gold Price & Markets https://www.coingecko.com/en/coins/pax-gold

Not financial advice. Nobody can pay for a VaultX review.

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