PAXG (Pax Gold) and XAUT (Tether Gold) are the two largest tokenized commodities, and both do the same core thing: each token represents one troy ounce of real, allocated gold held in a vault, so you own on-chain gold that tracks the metal's price. The differences are in the details that matter to an investor - who issues and regulates them, the fees, and how you can redeem for physical metal. Neither pays yield; both are a hedge and store of value, not an income investment. This guide compares them so you can pick the one that fits.

What they have in common

Both are fully backed by allocated physical gold - specific bars, not a paper claim - and each token equals one fine troy ounce. Both trade on-chain around the clock, let you own fractions of an ounce, and rise and fall with the gold price. For most buyers, either delivers the basic goal: exposure to gold without storing a bar yourself.

The value proposition of tokenized gold over a gold ETF is on-chain ownership: you hold it in your wallet, move it instantly, and can use it across crypto systems.

PAXG vs XAUT, side by side

The distinctions come down to issuer, regulation, fees, and redemption.

PAXG is issued by Paxos, a New York trust company regulated by the NYDFS, with gold held in London as Good Delivery bars and a monthly KPMG attestation; holders can look up the serial number of the specific bar backing their tokens via proof of reserves. It lives on Ethereum as an ERC-20. XAUT is issued by TG Commodities, a Tether company structured offshore (BVI, with an El Salvador license), with gold held in Switzerland and a quarterly BDO audit; it runs on several chains - Ethereum, TRON and others - which makes on-chain transfers cheaper, and it charges no ongoing custody fee but sits under lighter regulatory oversight.

The redemption terms are where the "gold you can hold" pitch meets reality. Redeeming PAXG for physical metal requires a full London Good Delivery bar - roughly 430 troy ounces, well over a million dollars at 2026 prices. XAUT's physical redemption is a minimum of 50 tokens (50 ounces), collected in Switzerland. Neither is a retail off-ramp, so for any normal-sized position your real exit is selling the token on the market, not claiming the metal. Factor that in before treating either as "physical" gold.

Which should you choose?

If regulatory oversight and transparency are your priority, PAXG's New York trust structure, monthly attestation, and bar-lookup lean in its favor. If minimizing holding costs and moving the token cheaply across chains matter most, and you are comfortable with Tether as issuer, XAUT is attractive - no custody fee and low-cost transfers on networks like TRON. For a small hedge position you plan to hold on-chain and never redeem physically, the practical difference is modest - both track gold closely. For larger or long-term holdings, the regulation and audit cadence deserve more weight.

On fees, confirm the live schedule either way. XAUT charges no ongoing custody fee; PAXG's creation and redemption fees are tiered, and its small on-chain transfer fee has at times been promotionally waived. Both issuers adjust these, so the number you see quoted today may not hold.

What to check either way

For any tokenized commodity, verify three things: that it is fully backed by allocated metal (not a synthetic or fractional claim), that a reputable qualified custodian holds it with proof of reserves or audits, and what redemption actually requires. Confirm the current fee schedules too, since issuers adjust them. Get those right and tokenized gold is a clean way to hold the metal on-chain; get them wrong and you may hold a weaker claim than you think.

Where to go next

• Next: tokenized private credit - yield vs risk.
• The wider range: real-world asset examples.
• Glossary: tokenized commodity.

Sources: Paxos and Tether disclosures; rwa.xyz, as of 2026.