14.02.2023Read Time: 6 min

Investing in Tokenized Gold: An Overview of Aurus and Paxos Gold

Investing in Tokenized Gold: tGOLD (TXAU) vs Paxos Gold (PAXG)

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Paxos Crypto Firm and its Current Lawsuit from the SEC

Paxos is a crypto firm that offers a variety of innovative solutions for individuals and businesses looking to invest in digital assets. Recently, the firm has faced a lawsuit from the SEC over its Binance USD token, which has raised doubt about its business practices. Despite this setback, Paxos continues to offer a range of products. One of them is Paxos Gold, a tokenized gold product exempted from the SEC's ongoing legal action against Binance USD (BUSD).

Let's examine Paxos Gold in greater detail and contrast it to Aurus, a tokenization solution that provides a variety of tokenized precious metals. The advantages of using Aurus tokenized precious metal goods will be discussed, along with how they stack up against Paxos Gold.

How Paxos Gold (PAXG) Works

Paxos Gold (PAXG) is a digital asset backed by physical gold stored in secure vaults. One token represents one fine troy ounce of a London Good Delivery gold bar stored in LBMA vaults in London. This provides Paxos Gold holders with a secure and transparent way to invest in gold

The Paxos platform utilizes blockchain technology to create a secure and transparent system for owning and transferring Paxos Gold. Paxos Gold is an ERC20 token deployed under the Ethereum blockchain. This technology ensures that the ownership of each Paxos Gold token is accurately tracked and recorded, providing a high level of security for Paxos Gold holders. Additionally, Paxos Gold is fully redeemable for LBMA-accredited Good Delivery (12.5kg) gold bullion bars. Institutional customers can also redeem for unallocated Loco London Gold, allowing holders to take physical possession of their holdings if they choose.

Paxos has a policy commitment to make sure current attestations are available when providing Proof-of-Reserves and support. By that pledge, Paxos publishes attestation reports monthly from WithumSmith+Brown, PC, an unbiased third-party accounting firm.

How Aurus Works

Aurus facilitates a tokenization solution that allows precious metals businesses around the world to mint gold, silver, and platinum-backed tokens. Accredited bullion refineries and dealers can tokenize their own precious metals, to create digital representatives tGOLD (TXAU)tSILVER (TXAG), and tPLATINUM (TXPT). This provides users with a wider range of investment options compared to Paxos Gold, which is exclusively backed by gold. It also allows precious metals businesses to easily participate in the digital asset space.

Like Paxos Gold, Aurus tokenized precious metals are backed by physical metals stored in secure vaults, ensuring that the value of the digital assets is directly tied to the price of the physical metals. Aurus precious metal tokens are always 1:1, backed by one gram of gold, silver, or platinum. Unlike Paxos, Aurus precious metal tokens offer both decentralized storage and distribution. This decentralized nature and presence of multiple sellers allows Aurus to create healthy price arbitrage and competition. Reserves offer decentralized storage in the most secure vaults in the world, including audited and insured vaults in Zurich, London, Montreal, Istanbul, and Singapore with partners such as CIODE, Oro Hispánica, Andorrano Joyería, and Direct Bullion. Aurus also provides a high level of security for its token holders, using blockchain technology to secure and track the ownership of the assets. Tokenized precious metals tGOLD, tSILVER, and tPLATINUM are ERC20 tokens that can be deployed in a multichain environment through the Ethereum chain and the Polygon chain, which means tokens can be transferred at extremely low cost in comparison to Ethereum-exclusive transactions.

With the help of Aurus' Proof-of-Reserves dashboard, consumers can access custodial audit reports to learn more about how their gold, silver, or platinum is kept safe in the world's most secure vaults.

Comparison: Paxos Gold vs tGOLD

One key difference between Aurus and Paxos Gold is that Aurus offers a wide range of Web3 appliances, such as gold-backed NFTs and the Aurus Mobile App. The Aurus Mobile App is a digital wallet that allows users to earn rewards on their gold, silver, and platinum tokens by allocating liquidity to DeFi platforms. Aurus allows users to diversify their portfolio with AurusX (AX), the Aurus ecosystem token, to earn recurrent rewards in gold, silver, and platinum tokens. Through the Aurus Mobile App, users can stake AurusX and claim rewards in gold, silver, and platinum tokens generated from the transactional activity of Aurus precious metal tokens. AurusX has a limited supply of 30 million tokens, and scarcity drives long-term value. For a higher level of security, users can opt-in for an Aurus Vault Card hardware wallet to act as one of the most secure vaults in the world, protecting their investment. Aurus stands out with its network of precious metal businesses, which provides a stark contrast and a push for decentralization. Aurus adheres to the FCA regulations. Lastly, one major benefit within the blockchain space is the capacity to be in multiple chains, Aurus tokens are multichain and can be transferred through both Ethereum and Polygon chains.

The Best Option for Investing in Gold-Backed Cryptocurrency

Finally, those looking for a simple approach to invest in gold and other precious metals might consider Aurus tokenized precious metal products. Individuals and companies can easily invest in this asset class thanks to Aurus and its network of precious metals businesses., which offers a safe and practical option to invest in tokenized precious metals. Investing in precious metals through Aurus offers a new and innovative investment possibility for anyone, whether trying to diversify their portfolios or make a long-term investment. Users can make precious metals work for them by providing additional passive rewards through the advantages of DeFi and the world of Web3. Aurus has a variety of creative ways to participate in the precious metal market utilizing the technology of Web3. Through the acceptance and use of numerous Web3 technologies and the practicality of an app where you may be in control of your investment, Aurus is elevating tokenized gold investments.

Buy tGOLD (TXAU) in 3 quick steps

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