The Difference Between PAX Gold and Tether Gold

In the cryptocurrency world, a category known as gold-backed digital assets has emerged. These are digital tokens where each token represents a real amount of physical gold stored in secure vaults. Two of the most well-known examples are PAX Gold (PAXG) and Tether Gold (XAUT).

Although both tokens follow the same basic concept, there are several important differences between them.

First : Issuing Company

PAX Gold is issued by Paxos, a U.S. financial company that operates under regulatory oversight in the United States.

On the other hand, Tether Gold is issued by Tether, the same company that issues the stablecoin Tether.

Because of this, some investors consider PAXG to be more regulated compared to XAUT.

Second : Gold Backing

In both tokens, each unit represents one troy ounce of real physical gold.

This means:

1 PAXG = 1 ounce of gold
1 XAUT = 1 ounce of gold

The gold backing these tokens is stored in secure vaults and can be verified through official reports.

Third : Gold Storage Location

The gold backing PAXG is typically stored in professional vaults located in London.

Meanwhile, the gold backing XAUT is generally stored in vaults located in Switzerland.

Fourth : Transparency and Reporting

Paxos publishes monthly attestation reports that show the amount of gold backing the issued tokens.

In comparison, Tether provides reports about the gold reserves backing XAUT, but these reports are released less frequently.

Because of this, some analysts believe that PAXG offers a higher level of transparency.

Fifth : Blockchain Networks

PAXG mainly operates on the Ethereum blockchain.

XAUT, however, is available on more than one blockchain network, including Ethereum and TRON.

Being available on multiple networks can sometimes allow faster transactions or lower fees, particularly when using the TRON network.

Conclusion

Both PAXG and XAUT represent real physical gold on the blockchain, allowing investors to gain exposure to gold in a digital form without physically storing it.

The main differences lie in the issuing company, regulatory environment, transparency of reports, and the blockchain networks each token operates on.