- Most of the gold-backed tokens exist as ERC-20 standard tokens.
- More than 3.5 trillion dollars of PAXG gold is utilized for financial purposes.
Modern gold-backed tokens ( commodity collateralized stablecoins) provide access to gold futures markets. They are built on the blockchain platform. All gold-backed cryptocurrencies are derivative assets that allow users to buy, sell, and hold actual gold at any time and from anywhere. They minimize the inconvenient aspects of dealing with real gold, such as illiquidity, transferability, and volatility.
Most gold-backed cryptocurrencies are converted to actual gold as digital cryptocurrencies. They can be exchanged for fiat or other cryptocurrencies on crypto exchanges. Depending on the project, gold-backed them in various ratios, for example, One token is backed by one gram of gold or a certificate. “A single unit of cryptocurrency is equal to one unit of gold some are backed at a 1:1 ratio, with one token equaling one gram of gold”. The greater returns from gold pricing benefit token investors. Gold reserves, such as those held by banks or third-party entities known as custodians, should be utilized to support that coin.
There are two major gold-backed crypto assets Paxos Gold (PAXG) and Tether Gold (XAUT) including DigixGlobal, Goldcoin, Meth Gold, and Perth Mint Gold.
Paxos Gold (PAXG)
Paxos is created PAXG as a token on the Ethereum blockchain, it can be traded for other cryptocurrencies and is protected by cryptographic keys. Each PAXG token is convertible for 1 troy fine ounce of gold held by Paxos and its partner’s vaults, and its market value is intended to reflect that of the physical gold it represents.
According to CoinMarketCap (CMC) Today’s PAX Gold price is $1,833.83 USD, with $24,526,411 USD in 24-hour trading volume. With a live market cap of $604,453,567 USD, PAX Gold is up 1.85% in the last 24 hours. There are 329,613 PAXG coins in circulation.
TG Commodities Limited offers Tether Gold as a digital asset. Tether (USDT) is a cryptocurrency stablecoin backed 100% by Tether’s reserves and pegged to the US dollar. On a London Good Delivery bar, one complete XAUt token equals one fine troy ounce of gold.
According to CMC price of Tether Gold is $1,829.58 USD with a 24-hour trading volume of $406,019 USD. In the last 24 hours, Tether Gold has increased 1.41% with a current market capitalization of $451,035,233 USD. It has a 246,524 XAUT coin circulation.