Tokenized gold (PAXG, XAUT)
Blockchain tokens designed to represent a set amount of physical gold held in custody, such as PAXG and XAUT.
Tokenized gold is a crypto token designed to track the price of gold by being backed by physical bullion held in vaults. PAXG and XAUT are two widely traded examples. Each token is meant to represent a set quantity of gold, typically one troy ounce, and holders' claims depend on the issuer's custody and redemption terms.
On our site, tokenized gold is shown with its price per token and the gold reference used. Because these tokens trade 24/7, their price can drift from the London spot benchmark over weekends and holidays.
Traders care because the tokens let gold exposure trade around the clock on crypto venues. A gap to spot reflects the market's view of redemption ease, fees and demand, and it is not a risk-free profit.
Worked example (illustrative numbers, not real data): gold spot is 2,000 per ounce, and a token trades at 2,015 on a Sunday. The 15-dollar premium, or 0.75 percent, reflects that spot gold markets are closed until Monday. Redeeming the token for metal carries fees and time, so the premium is not a free trade.