PAXG vs. XAUT: which gold-backed token fits you

Both tokens aim to track one troy ounce of gold each. The differences that matter are issuer, redemption process, and exchange availability — not the price chart, which tends to look similar for both.

The shared idea

Pax Gold (PAXG) and Tether Gold (XAUT) are both cryptoassets designed so that each token represents an amount of gold held by the issuing company, typically allocated bullion stored in professional vaults. Holding the token is meant to approximate holding an interest in that underlying gold, without arranging physical storage yourself.

Issuer differences

PAXG is issued by Paxos Trust Company, a regulated trust company. XAUT is issued by Tether, best known for the USDT stablecoin. Each issuer publishes its own attestation and redemption terms — these are not identical products with different names, and the fine print is worth reading directly from each issuer before relying on either.

Redemption terms differ

Both issuers describe processes for redeeming tokens for physical gold or its cash equivalent, but minimum redemption amounts, fees, and verification requirements vary and can change. Anyone planning to actually redeem rather than simply hold or trade the token should read the current terms directly on the issuer's site rather than relying on a summary.

Where they trade

Liquidity for both tokens is concentrated on specific exchanges rather than evenly spread across the crypto market. GoldAlert's chart uses Coinbase for PAXG and Kraken for XAUT as reference venues; actual tradable price and spread can differ somewhat by exchange.

Premium or discount to spot

Because these are traded assets with their own supply and demand, their market price can drift slightly above or below the spot gold price implied by their backing — usually a small gap, but worth checking rather than assuming a token always trades at exact parity with spot. GoldAlert's Cross-Asset Ratios panel shows PAXG's current premium or discount versus spot gold for this reason.

Added layers of risk versus physical gold or an ETF

A gold-backed token adds issuer risk, custody risk, smart-contract and blockchain risk, and exchange risk on top of gold's own price risk. These are real, additional layers — not a reason to avoid the category, but a reason to size any position with those extra risks in mind rather than treating the token as identical to holding gold directly.

This article describes how these tokens are structured and is not investment advice. Always confirm current terms directly with each issuer.