Paxos (PAXG)

System: Paxos — Money and Payments

Paxos provides regulated issuance, redemption, custody and trading infrastructure for USD-backed stablecoins and tokenised gold, PAXG. Founded in 2012, Paxos uses public-blockchain token contracts together with Paxos legal entities, the Paxos Platform/API/dashboard, reserve and custody operations, compliance processes, PAXG gold allocation, stablecoin reward-routing infrastructure, and itBit as its operated institutional trading and OTC venue. Underlying public blockchains, non-Paxos wallets, external exchanges, external lending protocols, PayPal/Venmo front ends, and partners’ own businesses sit outside the boundary except as rails, distribution venues or exogenous integrations.

Market Data

Price$4212.92
Market Cap$1.92B
Fully Diluted Valuation$1.92B
30d Change-10.15%
365d Change22.00%

Token Functionalities

Asset Ownership

  • Off-Chain Asset Title/Pool Share (Weak)

    Right to transfer beneficial ownership of allocated London Good Delivery gold represented by PAXG, and for verified Paxos customers to convert or redeem PAXG for USD, unallocated gold or allocated gold through Paxos subject to Paxos terms.

System Attributes

Operating Model

<p>Paxos&nbsp;relies&nbsp;on&nbsp;regulated&nbsp;off-chain&nbsp;entities&nbsp;and&nbsp;account-gated&nbsp;processes&nbsp;to&nbsp;issue,&nbsp;redeem,&nbsp;custody&nbsp;and&nbsp;administer&nbsp;its&nbsp;tokens;&nbsp;the&nbsp;public&nbsp;token&nbsp;contracts&nbsp;extend&nbsp;the&nbsp;business&nbsp;model&nbsp;but&nbsp;do&nbsp;not&nbsp;make&nbsp;independent&nbsp;suppliers&nbsp;responsible&nbsp;for&nbsp;the&nbsp;core&nbsp;issuance&nbsp;or&nbsp;redemption&nbsp;service.&nbsp;For&nbsp;PAXG&nbsp;specifically,&nbsp;direct&nbsp;purchase,&nbsp;conversion&nbsp;and&nbsp;redemption&nbsp;through&nbsp;Paxos&nbsp;require&nbsp;verified-customer&nbsp;status,&nbsp;while&nbsp;Paxos&nbsp;Trust&nbsp;manages&nbsp;the&nbsp;gold&nbsp;custody&nbsp;and&nbsp;allocation&nbsp;process.</p>

Value Creation

<p>Paxos&nbsp;creates&nbsp;value&nbsp;primarily&nbsp;through&nbsp;off-chain&nbsp;custody,&nbsp;allocation,&nbsp;compliance&nbsp;and&nbsp;redemption&nbsp;processes&nbsp;that&nbsp;support&nbsp;tokenised&nbsp;claims&nbsp;on&nbsp;fiat-backed&nbsp;stablecoins&nbsp;and&nbsp;physical&nbsp;gold.&nbsp;PAXG’s&nbsp;core&nbsp;value&nbsp;is&nbsp;the&nbsp;Paxos-administered&nbsp;claim&nbsp;on&nbsp;allocated&nbsp;London&nbsp;Good&nbsp;Delivery&nbsp;gold;&nbsp;the&nbsp;Ethereum&nbsp;token&nbsp;records&nbsp;and&nbsp;transfers&nbsp;the&nbsp;claim,&nbsp;but&nbsp;the&nbsp;productive&nbsp;activity&nbsp;is&nbsp;the&nbsp;regulated&nbsp;custody&nbsp;and&nbsp;allocation&nbsp;of&nbsp;the&nbsp;underlying&nbsp;gold.</p>

Value Capture

<p>At&nbsp;the&nbsp;Paxos-system&nbsp;level,&nbsp;value&nbsp;is&nbsp;captured&nbsp;and&nbsp;routed&nbsp;through&nbsp;both&nbsp;off-chain&nbsp;and&nbsp;on-chain&nbsp;components:&nbsp;Paxos&nbsp;captures&nbsp;off-chain&nbsp;fees&nbsp;and&nbsp;platform&nbsp;economics&nbsp;from&nbsp;issuance,&nbsp;conversion,&nbsp;redemption,&nbsp;custody&nbsp;and&nbsp;reserve&nbsp;services,&nbsp;while&nbsp;its&nbsp;Partner&nbsp;Rewards&nbsp;Engine&nbsp;routes&nbsp;stablecoin&nbsp;partner&nbsp;rewards&nbsp;through&nbsp;dashboard,&nbsp;API&nbsp;and&nbsp;directly&nbsp;on-chain&nbsp;paths.&nbsp;For&nbsp;the&nbsp;PAXG&nbsp;product&nbsp;line&nbsp;specifically,&nbsp;value&nbsp;capture&nbsp;remains&nbsp;off-chain:&nbsp;PAXG&nbsp;terms&nbsp;evidence&nbsp;conversion,&nbsp;redemption,&nbsp;account&nbsp;and&nbsp;possible&nbsp;storage-fee&nbsp;rights,&nbsp;but&nbsp;no&nbsp;PAXG-holder&nbsp;share&nbsp;of&nbsp;Paxos&nbsp;revenue&nbsp;or&nbsp;PAXG-native&nbsp;protocol&nbsp;fee&nbsp;flow.</p>