Tokenized gold bridges two worlds: the stability of bullion and the flexibility of crypto rails. Instead of opening a metal account or wiring to a bullion desk, you hold a token that represents title to vaulted gold and can be sent 24/7 across public blockchains. But not all gold tokens are alike. Issuers differ on custody, redemption, audits/disclosures, jurisdiction/regulation, and market access—differences that directly impact your risk.
Below is a side-by-side, source-backed guide to the three tickers you’ll encounter most often in 2025 conversations: PAXG (Pax Gold), XAUT (Tether Gold), and QGOLD (Quorium).
How tokenized gold works
At a high level, each token is intended to equal a pro-rata claim on London Good Delivery bullion held by a custodian. Tokens live on chains (commonly Ethereum) and move like any ERC-20. When designed well, you get:
- on-chain transferability and 24/7 settlement,
- a specified custodian/vault holding bars that meet LBMA standards,
- a path to redeem for metal or fiat, and
- public documentation (audits/attestations, bar lists, terms).
That blueprint is common—but how rigorously each issuer executes it varies.
PAXG (Pax Gold): trust structure, London bars, NYDFS oversight
What it is. PAXG is issued by Paxos. Each token equals one fine troy ounce of LBMA-accredited Good Deliverygold, custodied (e.g., Brink’s London). Paxos states that holders can convert tokens to allocated or unallocated gold or USD, and—importantly—redeem for Good Delivery bars (institutional minimums apply). Paxos operates as a New York trust company under NYDFS supervision with detailed product terms.
Why traders like it. Clear New York regulatory perimeter; regular third-party attestations; bar-level detail; direct metal redemption routes. Paxos also emphasizes low settlement/credit risk relative to ETFs because PAXG settles near-instantly on chain.
Key considerations. KYC is strict for issuer-facilitated redemption; retail holders typically redeem via approved partners or convert to USD with Paxos rather than taking delivery of a full bar.
XAUT (Tether Gold): allocated bars and Swiss delivery option
What it is. Tether Gold (XAUT) represents ownership in specific allocated bar(s) that meet London Good Deliverystandards (a serial number is viewable to holders). The issuer advertises physical delivery in Switzerland for redemptions that meet size/eligibility rules. FAQs outline custody and redemption mechanics, including bar identification.
Why traders like it. Familiar issuer for crypto-native users; allocated-bar model; delivery route in Switzerland; broad exchange availability alongside USDT pairs.
Key considerations. Disclosure cadence and regulatory framework differ from a NYDFS trust model; always review the XAUT terms/FAQ to understand thresholds, fees, and who exactly is the custodian of record.
QGOLD (Quorium): emerging gold-backed stablecoin
What it is. QGOLD is presented by Quorium as a gold-backed stablecoin “pegged to the troy-ounce gold price,” with documentation claiming backing by physical reserves and tokenization of precious assets. Exchange and data pages list QGOLD and reference its gold-backed intent.
Why traders look at it. Newer project positioning itself for accessible, on-chain gold exposure; available on a subset of exchanges; marketing emphasizes converting “physical gold resources” into a tradable digital asset.
Key considerations. Compared with PAXG and XAUT, public third-party attestations, bar-list detail, and long-running regulatory disclosures are limited. As with any emerging issuer, perform enhanced due diligence: who is the legal issuer? where are the vaults? what are audit rights? how is redemption handled? (Rely on the project’s official publications until wider independent coverage develops.)
Side-by-side: what matters to traders
1) Custody & Bar Standard
- PAXG: LBMA Good Delivery bars; stored with established vault providers (e.g., Brink’s London).
- XAUT: Allocated gold identifiable by serial number on Good Delivery bars.
- QGOLD: Described as backed by physical gold reserves; specifics about vault location/custodian are project-published and should be verified by users.
2) Redemption
- PAXG: Options for allocated/unallocated gold or USD; issuer highlights redemption for LBMA Good Delivery bars (institutional sizing applies).
- XAUT: Redemption with physical delivery in Switzerland (eligibility, minimums, and fees apply).
- QGOLD: Project materials state backing and gold linkage; check whitepaper/terms for redemption mechanics before relying on physical delivery.
3) Regulation & Disclosures
- PAXG: Issued by Paxos Trust Company, regulated by NYDFS; detailed terms/conditions and regular attestations.
- XAUT: Issued by Tether; provides FAQs and product site disclosures, with different regulatory posture from a U.S. trust model.
- QGOLD: Issuer disclosures primarily on Quorium’s site and exchange pages; treat as higher-DD until third-party audits and bar-lists are routine.
4) Chain Support & Transfers
- PAXG/XAUT: Live on Ethereum (and bridges/wrappers exist on some networks), enabling integration with major exchanges and custodians. Issuers publish contract addresses and transfer policies.
- QGOLD: Listed on select exchanges; confirm the exact contract(s) and chain(s) on official pages before transacting.
5) Fees & Minimums
- PAXG: Issuer fees for on-chain transfers and redemption; gas fees apply. Details in Paxos terms.
- XAUT: Delivery/redemption fees and minimums per Tether Gold FAQ.
- QGOLD: Consult Quorium docs/exchange listings for issuance, redemption (if any), and trading fees.
Choosing between PAXG, XAUT, and QGOLD: a decision framework
- Your objective.
- Trading/integration: If you need deep liquidity and broad exchange/custody support, established tickers typically have an edge.
- Eventual metal delivery: Review redemption pathways. PAXG emphasizes LBMA bar redemption and NY trust oversight; XAUT advertises Swiss physical delivery. Minimums and KYC apply in both cases.
- Issuer transparency & regulation.
- If you prioritize a regulated trust model and U.S. oversight, PAXG stands out.
- For allocated-bar specificity with serial numbers and a Swiss delivery route, XAUT is designed accordingly.
- For emerging projects like QGOLD, scrutinize governance, vaulting, audits, and redemption terms carefully and size positions accordingly.
- Operational risk.
- Confirm official contract addresses to avoid impostor tokens.
- Understand gas costs and exchange withdrawal fees; gold tokens can be relatively high-value, so small percentage fees matter.
- Tax and compliance.
- Even if “gold” feels like a commodity, on-chain transfers are typically disposals for tax purposes when you trade token-gold for another asset. Keep invoices, bar-lists (if provided), and TXIDs for audits (jurisdiction-specific rules apply).
Practical tips before you click “buy”
- Read the product terms, not just the homepage. Paxos and Tether publish detailed T&Cs/FAQs that spell out redemption gates, fee schedules, and what exactly you own.
- Verify bar information when available. XAUT holders can see bar serial numbers; PAXG provides bar-level info through Paxos; store copies for your records.
- Match custody to your risk. For amounts you will not actively trade, consider reputable custodians or self-custody with hardware-key security and careful key management.
- Plan exit routes. If your endgame is fiat, check issuer conversion paths and exchange liquidity. If it’s metal, ensure you meet redemption minimums and understand delivery geography (e.g., Switzerland for XAUT).
- For newer assets like QGOLD, confirm the legal entity, vault location, attestations, and how redemption works before sizing up.
Bottom line
Tokenized gold is not a single product—it is a spectrum. PAXG offers a New York trust framework with LBMA Good Delivery redemption routes and robust disclosures. XAUT provides allocated bar ownership with Swiss delivery mechanics and strong crypto-native distribution. QGOLD is an emerging gold-backed token whose public documentation is primarily issuer-hosted; it deserves extra diligence until independent audits and bar-list routines are commonplace.
Choose the instrument that matches your use case, regulatory comfort, and redemption needs—and read the fine print. With the right token, you can hold gold that moves at internet speed without losing sight of the vault behind the bytes.