PAX Gold – the world’s first and only regulated, gold-backed digital asset – is the first gold token to surpass $100 million in total market capitalization. 144 LBMA 400 ounce gold bars in London vaults back the total supply of more than 57,000 PAX Gold tokens today. This milestone also makes PAX Gold the biggest non-dollar asset backed token.
The entire gold market surged in 2020, but digital gold has seen an explosion unlike other products. From March 2020 to today, we saw a 2.5x increase in the total supply of PAX Gold and 32% growth in January alone. On-chain activity, which indicates how much the PAX Gold in circulation is traded, has increased a remarkable 500% since March 2020.
PAX Gold continues to stand alone in the market. It is the only regulated gold-backed token. It has the flexibility and accessibility of crypto with the benefits of allocated physical gold secured in vaults without storage fees. Additionally, clients are able to earn interest on PAX Gold holdings through our partners like BlockFi, Crypto.com, Celsius and Nexo. And, because it’s highly divisible and mobile, anyone can get small amounts of gold at very low prices. This was never possible before PAX Gold.
Gold is not going away. It’s a store of value that the world trusts and relies upon. PAX Gold is simply the easiest, fastest and cheapest way to get the highest quality physical gold. The $100 million mark is a symbolic one, and we are pleased with the progress we’ve made so far. It is only, however, a tiny step towards our vision of a token based financial system. We are planning on greater growth for our tokenized gold in 2021 and we are very excited for the path ahead.