XAUT vs PAXG: 2 Crypto Golds Compete Amid Global Gold Price Surge

Updated

January 31, 2026

Gambar XAUT vs PAXG: 2 Crypto Golds Compete Amid Global Gold Price Surge

Jakarta, Pintu News – The debate between XAUT and PAXG is heating up again among crypto investors and digital gold lovers as both tokens offer a new way of holding physical gold through blockchain networks. XAUT and PAXG are gold tokenizations that each represent one troy ounce of physical gold stored in secure vaults and traded 24/7 like regular digital assets.

With gold prices continuing to break record highs while becoming a key hedge amid global economic uncertainty, gold exposure through crypto is becoming increasingly attractive. This article compares the two tokens in several important ways to help investors determine which one is more suitable.

What are XAUT and PAXG

XAUT, or Tether Gold, is a blockchain-based crypto token issued by Tether Limited and backed 1:1 by LBMA-certified physical gold stored in Swiss vaults. Each XAUT token provides digital ownership of physical gold without the need to manage traditional gold logistics, such as insurance or physical storage.

This ownership can be verified through the blockchain, allowing users to move or trade tokens quickly across multiple exchanges. XAUT is also present on several networks such as Ethereum (ERC-20) and other networks to increase liquidity and accessibility.

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Meanwhile, PAXG, or PAX Gold, is issued by Paxos Trust Company which is licensed under the New York State Department of Financial Services (NYDFS). Just like XAUT, each PAXG represents one troy ounce of physical gold stored in a trusted vault and tracks the world gold price.

PAXG features regulatory and transparency aspects with the publication of gold reserve audits on a monthly basis, so investors have strong visibility over its physical backing. The token is also widely integrated within Ethereum’s DeFi ecosystem, enabling fractional ownership as well as use across various decentralized finance protocols.

Also read: Gold adds BTC’s market cap equivalent in a day, crypto markets lag behind?

Regulation, Transparency, and Cost

One of the key differences between XAUT and PAXG lies in the regulation and transparency of the issuer. PAXG is issued by Paxos, an entity subject to NYDFS oversight in the United States, so it is legally more supervised and often considered safer by institutional investors. Paxos also provides monthly published audits, giving token holders more assurance that each token is still backed by sufficient physical gold.

Instead, XAUT is issued by Tether, a company that has a long footprint in stablecoins like USDT but is not US-licensed. XAUT generally trades closer to the spot price of gold due to its high liquidity and Tether’s ecosystem support. However, its audits are generally less frequent and not as detailed as PAXG, so some investors may see it as less transparent even though it is still backed by physical gold.

Liquidity, DeFi, and Market Access

In terms of liquidity and market integration, XAUT often excels due to support from multi-chain networks and strong liquidity on major crypto exchanges. Investors looking for quick trading convenience and exposure to gold across multiple platforms may find XAUT more attractive due to its highly liquid nature.

Meanwhile, PAXG also has high liquidity, especially on major exchanges such as Binance and Coinbase, with strong support classified as stable for trading and DeFi integration.

In addition, many DeFi platforms on the Ethereum network offer yield opportunities for PAXG holders due to broader integration with protocols such as Aave and Uniswap. This makes PAXG usable as part of a more complex investment strategy in the Ethereum-based cryptocurrency ecosystem.

Conclusion

Gold tokenization through XAUT and PAXG combines the stability of traditional assets with the advantages of blockchain technology, providing investors with a new pathway to gain gold exposure without having to store physical gold.

The choice between XAUT and PAXG depends on individual investment priorities: whether to prioritize liquidity and a broad ecosystem, or strong regulation and transparency. As gold prices continue to trend higher, these two tokens are attractive alternatives for crypto investors looking to hedge against market volatility.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

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