PAX Gold (PAXG) is a cryptocurrency backed by physical gold. It combines the security of traditional gold with the agility of blockchain technology.
Tokenized gold is transforming the way people access this traditional asset, combining the stability of the precious metal with the efficiency of blockchain technology. This innovation lets our users diversify their investments without the complexities of physical gold. At Skipo, we simplify your access to PAX Gold (PAXG), a token that represents real gold in vaults, available with the immediacy of a crypto transaction. PAXG is a crypto asset backed by physical gold, where each token equals one troy ounce of London Good Delivery fine gold. Its popularity is growing in Latin America, especially in countries with high inflation or economic uncertainty, as an accessible and efficient alternative to traditional gold.
What is PAXG and how does its gold backing work?
PAXG is an ERC-20 token that runs on the Ethereum blockchain, issued by Paxos Trust Company, a regulated entity in New York. Each PAXG token represents ownership of one troy ounce of physical gold, specifically a London Good Delivery gold bar, stored in Brink's vaults in London. Paxos Trust Company stands out for its rigorous regulation by the New York State Department of Financial Services (NYDFS), which ensures 1:1 backing and a clear separation of assets. This means the physical gold isn't part of Paxos's assets; it's segregated and belongs to PAXG token holders. To guarantee transparency and backing, Paxos publishes monthly attestation reports, prepared by KPMG LLP since February 2025, following AICPA standards.
- PAXG is an ERC-20 token on Ethereum.
- Each token represents one troy ounce of London Good Delivery physical gold.
- The gold is stored in Brink's vaults in London.
- Paxos Trust Company, regulated by the NYDFS, issues PAXG.
- Monthly KPMG LLP attestation reports verify the 1:1 backing.
Unlike other gold tokens such as XAUT (Tether Gold), which is also backed by physical gold but with quarterly attestations and less specific regulatory oversight in the US, PAXG offers a higher level of institutional assurance and regulatory transparency.
Why invest in tokenized gold from Chile
Investing in tokenized gold from Chile offers a modern solution to persistent economic challenges, such as volatility and inflation, while democratizing access to an asset historically reserved for large investors. Gold has proven to be a reliable safe-haven asset, especially during periods of global economic uncertainty, as an XTB analysis highlights.
- Gold acts as a shield against inflation and currency devaluation.
- PAXG gives you instant access to gold, without the need for bank intermediaries or complex paperwork.
- The associated costs are significantly lower.
- Adding PAXG to your Skipo wallet lets you diversify effectively, combining the protection of gold with the liquidity and growth potential of other cryptocurrencies and stablecoins, all on a single platform.
Adoption of tokenized gold in Latin America has grown exponentially, with a 177% increase in 2025, outpacing the growth of physical gold by 2.6 times. This shows its relevance as a solid, accessible financial alternative in the region.
How to buy PAXG in Chile: step by step with Skipo
Buying PAXG in Chile through Skipo is a process designed to be simple and secure, giving you access to tokenized gold in minutes. Our platform is registered with the CMF and holds ISO/IEC 27001:2022 information security certification.
- Step 1: Open your Skipo account. Download our app and complete your registration. Identity verification is quick and is part of our obligations as an entity registered with the UAF.
- Step 2: Deposit funds. You can deposit Chilean pesos directly from your bank, or transfer cryptocurrencies or tokenized stocks to your Skipo wallet.
- Step 3: Find PAXG and buy. Go to the cryptocurrencies section, search for PAXG and place the order. At Skipo, we don't charge buy/sell fees, so your investment is more efficient.
- Step 4: Your tokenized gold in your wallet. Once the transaction is confirmed, your PAXG is stored securely in your Skipo wallet, available to manage 24/7.
At Skipo we position ourselves as the best option for Chilean investors thanks to our intuitive interface, the absence of buy and sell fees, and our registration in the CMF's Registry of Financial Service Providers, with our authorization to operate in process under the Fintech Law (Law No. 21.521).
Key takeaways
- PAXG is a 1:1 gold token, regulated by the NYDFS and verified monthly through attestation reports by KPMG, offering high transparency and security.
- Skipo makes it easy to buy PAXG with no buy or sell fees and with a simple interface; it is also registered with the CMF under the Fintech Law.
- Tokenized gold works as a liquid safe-haven asset that can be transferred 24/7, especially valuable in times of economic volatility.
Conclusion
Tokenized gold, and PAXG specifically, democratizes access to gold as an essential safe-haven asset in Chile, merging the solidity of the precious metal with the agility of the digital world. With Skipo, buying tokenized gold is as simple as any other crypto, with no buy/sell fees and with the security of a platform used by thousands of people.
Frequently asked questions
What is PAXG and how is it backed by real gold?
PAXG is an ERC-20 token issued by Paxos Trust Company, where each token represents one troy ounce of London Good Delivery physical gold stored in regulated Brink's vaults in London. Its 1:1 backing and the existence of the gold are verified through monthly attestation reports prepared by an independent firm, KPMG LLP, guaranteeing its authenticity and transparency.
How much does it cost to buy PAXG tokenized gold in Chile?
On Skipo, you can buy PAXG with no buy or sell fees and start with CLP 1,000. This contrasts with other platforms, which can charge 10-15% over the spot price in premiums, or gold funds, which have annual management fees.
Is it safe to buy PAXG in Chile through Skipo?
Buying PAXG on a platform registered with the CMF gives you more protection than doing so on one that is not. Skipo is registered with the CMF under Chile's Fintech Law and registered with the UAF. In addition, PAXG is issued by Paxos Trust Company, a regulated entity in New York, with its physical gold backing verified regularly through attestation reports by an independent firm.
Can I sell my PAXG at any time?
Yes, you can sell your PAXG at any time on Skipo. The platform operates 24/7, letting you buy and sell without market hours or days of waiting, with immediate settlement.
What's the difference between PAXG and buying physical gold?
The main difference lies in accessibility and efficiency. PAXG lets you invest from small amounts and transfers instantly, with no storage or insurance costs, and it's highly divisible. Physical gold, on the other hand, requires a larger initial investment, involves storage costs and is less liquid and divisible.
Is it better to invest in PAXG or bitcoin as a safe haven?
PAXG and bitcoin play different roles as safe-haven assets. PAXG offers lower volatility because it tracks the price of physical gold and provides tangible backing, ideal for preserving capital. Bitcoin, on the other hand, is more speculative and volatile, but with greater long-term appreciation potential. A smart diversification strategy could include both.
Glossary of key terms
Tokenized gold: A digital representation of physical gold on a blockchain, allowing efficient transfer and 24/7 availability.
PAX Gold (PAXG): An ERC-20 token that represents ownership of one troy ounce of physical gold, issued by Paxos Trust Company.
ERC-20: A technical standard used by smart contracts on the Ethereum blockchain to implement tokens.
Paxos Trust Company: A blockchain infrastructure company regulated by the New York State Department of Financial Services (NYDFS), and the issuer of PAXG.
London Good Delivery: A globally recognized quality standard for gold and silver bars that guarantees their purity and weight.
Safe-haven asset: An asset that tends to hold or increase its value during periods of economic uncertainty or market volatility.
Stablecoin: A type of cryptocurrency designed to maintain a stable value, usually pegged to a fiat currency such as the US dollar.
Blockchain: A distributed ledger technology that stores information securely and transparently on a decentralized network.
CMF: Comisión para el Mercado Financiero (Financial Market Commission), the regulator of financial markets in Chile.
SII: Servicio de Impuestos Internos, the agency in charge of tax administration in Chile.
