PAXG vs. XAUT: which gold-backed token fits you
Both aim to do the same basic thing: one token, one troy ounce of gold. Their price charts tend to look nearly identical. The real differences live somewhere you won't see on a chart at all — the issuer, the redemption process, and where you can actually trade each one.
Same idea, two different companies behind it
Pax Gold and Tether Gold are cryptoassets structured so each token represents an amount of gold the issuer holds, typically allocated bullion in professional vaults. Holding the token is meant to approximate holding a claim on that gold, without you arranging storage yourself.
Who's actually standing behind each one
PAXG comes from Paxos Trust Company, a regulated trust. XAUT comes from Tether — the same company behind the USDT stablecoin. Same concept, different companies, different published attestations and terms. Worth reading each issuer's own fine print rather than assuming the two are interchangeable just because the pitch sounds the same.
Redemption isn't identical either
Both issuers describe ways to redeem tokens for physical gold or its cash equivalent, but minimums, fees, and verification steps differ and can change without much fanfare. If you're the kind of holder who might actually redeem rather than just hold or trade, read the current terms straight from the issuer — don't rely on a summary, including this one.
Where the trading actually happens
Liquidity for both sits concentrated on a handful of exchanges rather than spread evenly across the crypto market. GoldAlert uses Coinbase as the reference for PAXG and Kraken for XAUT; the price and spread you'd actually get can vary somewhat depending on which exchange you use.
The premium or discount you might not expect
Because these trade as their own assets with their own supply and demand, the market price can drift a little above or below what the backing implies — usually a small gap, but worth checking rather than assuming perfect parity with spot at all times. That's why GoldAlert's Cross-Asset Ratios panel shows PAXG's current premium or discount versus spot gold.
The extra layers you're taking on
A gold-backed token stacks issuer risk, custody risk, smart-contract and blockchain risk, and exchange risk on top of gold's own price risk. None of that is a reason to avoid the category — it's a reason to size a position knowing those extra layers exist, rather than treating the token as if it were identical to holding gold directly.
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This article describes how these tokens are structured and is not investment advice. Always confirm current terms directly with each issuer.