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Tokenized Gold

Custody (Gold-Backing)

Physical gold held in vault backing tokenized-gold tokens 1:1

Category: Tokenized Gold Also known as: 3 Related terms: 3

What is Custody (Gold-Backing)?

Physical gold (bars/coins) stored in regulated vaults that backs every tokenized-gold token in circulation. Tether uses Swiss vaults for XAUT; Paxos uses LBMA-approved vaults for PAXG. Public attestations verify the holdings.

Context anchor

Unlike paper-gold ETFs, custody for XAUT/PAXG is allocated — each token maps to a specific physical bar.

Example

A 100-token mint event means 100 troy ounces of physical gold were added to the custodian vault that day.

Also known as

custodiangold-custodyvault

Related terms

  • XAUT (Tether Gold)Tether-issued gold token, 1 XAUT = 1 troy ounce of physical gold
  • PAXG (Paxos Gold)Paxos-issued gold token, 1 PAXG = 1 troy ounce held in LBMA-vault
  • RedemptionBurning tokenized-gold tokens to claim the physical gold or USD-equivalent