[ research · tokenized metals · 2026-11 ]
PAXG vs XAUT: how the two largest tokenized gold tokens differ
Both tokens claim one troy ounce of gold per token. That sentence is where the similarity ends. The differences that matter to a holder are custody, redemption, chains and fees — and they are all verifiable from the issuers' own disclosures.
1. The comparison, at a glance
| property | PAXG | XAUT |
|---|---|---|
| issuer | Paxos | Tether |
| unit | 1 fine troy ounce | 1 fine troy ounce |
| primary chain | Ethereum (ERC-20) | Ethereum (ERC-20) and Tron |
| custody | London vaults, LBMA-accredited, per the issuer | Swiss vaults, per the issuer |
| attestation | published by the issuer on a regular schedule | published by the issuer on a regular schedule |
| redemption | through the issuer, minimums and identity checks apply | through the issuer, minimums and identity checks apply |
| yield | none | none |
Fees, minimums and jurisdiction rules change; read each issuer's current terms before relying on any number. This page deliberately does not quote static fees.
2. What actually differs
Custody and issuer risk
A tokenized gold position is a claim on a custodian, not a bar in your hand. Two different issuers means two different legal entities, vault arrangements and attestation practices. If you hold both, you are diversifying issuer risk — which is the main reason to hold both at all.
Redemption path
Both issuers describe a redemption process, but it runs through them: minimum sizes, KYC, fees, and jurisdiction restrictions. For most holders the token is traded, not redeemed. If physical delivery matters to you, read the redemption terms first — they are the part most comparisons skip.
Chain and liquidity
Liquidity lives where market makers are. PAXG's market is concentrated on Ethereum; XAUT also has a large Tron presence. If you plan to move size, check the venues you would actually use, not a static table: depth and spreads change weekly.
Fees
Issuance and redemption fees are issuer-specific and can change. On-chain trading fees depend on the venue and the chain, not on the token. A comparison that quotes one number for "the fee" is out of date by the time it is published.
3. What neither token does
- No yield. Gold does not pay interest, and neither token does. Any yield product is a separate credit exposure.
- No guaranteed peg. The market price can trade above or below the issuer's reference value, especially on thin venues.
- No physical delivery by default. Delivery is a redemption process with conditions, not a feature of the token.
4. Holding both without a spreadsheet
Most holders end up with pieces of gold in different wallets on different chains. Planet's metals page reads PAXG, XAUT, KAG, VNXAU and KAU balances across chains in one view and routes spot purchases through an aggregator, so you can see the whole position in ounces rather than in five wallet screens. It is read-only for balances — the tokens stay in your wallet.
5. A short checklist before you buy
- Read the issuer's current redemption terms (minimums, KYC, fees, jurisdiction).
- Check the latest attestation date, not just its existence.
- Check the venue's depth for the size you plan to trade.
- Decide whether you are diversifying issuer risk or just chasing a spread.
This page is research, not investment advice. Tokenized gold is a claim on an issuer; it is not a bank deposit and it is not insured as one.