What Is Tokenized Gold and Who Is It For?
Tokenized gold is a crypto token that represents one troy ounce of vaulted gold. How PAXG and XAUT work, what they cost to hold, how they compare with bars and ETFs, and who they actually suit.
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StackFi data
XAUT and PAXG premium to spot gold, measured daily
XAUT · 42 days
-0.10%
Typical daily premium to spot. Below spot on 35 of 42 days; range -1.05% to +0.34%.
PAXG · 42 days
+0.07%
Typical daily premium to spot. Below spot on 18 of 42 days; range -1.08% to +0.55%.
| Day (UTC) | XAUT median | PAXG median |
|---|---|---|
| Nov 4, 2026 | -0.16% | +0.13% |
| Nov 3, 2026 | -0.29% | +0.06% |
| Nov 2, 2026 | -0.44% | -0.01% |
| Nov 1, 2026 | -0.09% | +0.49% |
| Oct 31, 2026 | -0.07% | +0.48% |
| Oct 30, 2026 | -0.02% | +0.31% |
| Oct 29, 2026 | -0.16% | -0.01% |
Token price (CoinGecko) against spot gold (gold-api.com) read in the same run, several times a day since Sep 24, 2026. Positive means the token cost more than the gold it represents.
Tokenized gold is a crypto token that represents a fixed amount of physical gold held in a vault, almost always one fine troy ounce per token. The issuer buys the gold, stores it with a custodian, and creates tokens on a blockchain against it. You can then hold, send and trade the token like any other crypto asset, at any hour, in fractions as small as you like.
Its price follows gold because every token is a claim on real metal and the issuer will create or redeem tokens for large holders. If the token drifts above or below spot, traders who can create or redeem close the gap.
The two products that matter
| XAUT (Tether Gold) | PAXG (Pax Gold) | |
|---|---|---|
| Issuer | TG Commodities (Tether group), British Virgin Islands | Paxos Trust Company, regulated in New York |
| One token | 1 fine troy ounce on an allocated London Good Delivery bar | 1 fine troy ounce on an allocated London Good Delivery bar |
| Vault | Switzerland | London |
| Reserve reports | Quarterly attestation | Monthly attestation |
| Market value, 10 Oct 2026 | $3.38 billion | $1.84 billion |
| Storage fee | None | None |
Other gold tokens exist, but they are small, thinly traded or discontinued. In practice the choice is between these two. The section-by-section comparison is in PAXG vs XAUT, and the XAUT reserve evidence in our Tether Gold review.
How close does it stay to the gold price?
Close, most of the time. StackFi prices both tokens against spot gold several times a day. Since 24 September 2026 the typical daily premium has been −0.03% for XAUT and +0.10% for PAXG, so a token usually costs within about a tenth of a percent of the gold behind it. On 25 September both briefly traded about 1% below spot. The daily record is on the XAUT and PAXG premium history page.
Tokenized gold vs bars and gold ETFs
| Coins and bars | Gold ETF | Tokenized gold | |
|---|---|---|---|
| What you own | The metal | Shares in a trust that holds metal | A claim on metal held by the issuer |
| Holding cost | Storage and insurance, if not at home | Annual expense ratio (e.g. GLD 0.40%) | No storage fee; network fees to move it |
| Buying | Dealer premium of a few percent | Brokerage account, market hours | Crypto exchange or wallet, any hour |
| Smallest amount | One coin or bar | One share | Any fraction of an ounce |
| Getting metal back | Already in hand | Not for retail investors | Whole bars only (about 430 oz) |
| Main risk | Theft, dealer spread when selling | Fund and broker structure | Issuer, contract and wallet |
The full trade-off is in physical gold vs gold ETF vs tokenized gold.
Who tokenized gold is for
- People who already hold crypto or stablecoins. Moving from USDT to gold takes one swap, with no brokerage account and no bank transfer.
- People who want to hold small amounts. You can buy $50 of gold, though network fees make very small purchases poor value on Ethereum.
- People who want gold they can move. A token can be sent across borders, used as collateral in some lending protocols, or sold at 3 a.m. on a Sunday.
- People who want to keep it themselves. Held in your own wallet, nobody else needs to approve a transfer.
Who it is not for
- People who want metal they can touch, or to hand to someone else. Redemption is only practical for whole bars.
- People who do not want to trust a single company. The token is only as sound as its issuer, its reserve reports and its contract.
- People who want the simplest possible gold holding in a retirement or brokerage account. An ETF does that with less to manage.
The fuller list is in who should not buy tokenized gold, and the risks one by one in tokenized gold risks.
How to buy it
Buy XAUT or PAXG with stablecoins on an exchange, in a DEX swap, or with the swap built into a wallet, then keep it in a wallet you control. Check the official contract address before you buy. Our step-by-step XAUT guide covers the routes, the contract and the costs.
FAQ
Is tokenized gold real gold?
It is a claim on real gold. Each token represents one fine troy ounce held on allocated London Good Delivery bars in the issuer’s vault. You own the claim, not the bar, until you redeem, which is only possible in whole bars.
What backs XAUT and PAXG?
Allocated gold in vaults: Switzerland for XAUT, London for PAXG. Both issuers publish attestations that the gold held matches the tokens issued — quarterly for XAUT, monthly for PAXG — and offer a lookup of the bars behind the tokens.
Is tokenized gold safe?
It is as safe as its weakest layer: the issuer, the reserve evidence, the token contract, the market you sell in, and your wallet. Gold’s own price risk stays the same. See tokenized gold risks.
Does tokenized gold pay interest?
No. Neither issuer pays holders anything. Any yield comes from a third party paying you to hold or lend the token; see does gold pay interest.
Which is better, PAXG or XAUT?
Neither is better for everyone. PAXG has a US regulator and monthly reports; XAUT is larger by market value. Choose the issuer you would rather trust.
XAUT Hold-to-Earn · until Nov 19
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- ✓XAUT on Ethereum, $20 minimum
Up to 7.86 USDT by Nov 19
Hold gold on-chain
Buy XAUT in TopNod
TopNod is a self-custodial wallet for tokenized gold — no seed phrase to write down. Your password is what restores access if you lose the device, so it is the one thing you cannot afford to forget: lose both and no one can recover the wallet for you.
- ✓Self-custodial — you hold the keys
- ✓No seed phrase; your password is the recovery factor
- ✓Check terms and costs in-app before buying
Disclosure: StackFi's chief editor, Woody, works in the Web3 wallet space and is affiliated with TopNod. We earn no referral fees. Details
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