Trust Score pending calculation
Key Facts
- Peg Currency
- GOLD
- Backing Type
- commodity_backed
- Audit Frequency
- Monthly (Withum)
- Reserve Ratio
- 100.30%
Global Regulatory Status
Reserve & Custody
Reserve Custodians
Metropolitan was a primary banking partner for Paxos since 2015. The termination followed broader industry consolidation after the 2023 banking crisis.
Signature Bank was a significant crypto-friendly banking partner. The closure impacted multiple stablecoin issuers. Paxos diversified custody following this event.
Reserve Attestation
Paxos Gold
Reserve Composition
Redemption
- Direct Redemption
- Yes
- Minimum Amount
- $100
- Fee
- 0.00%
- Processing Time
- 2 business days
- KYC/AML required
- Paxos account required
- Minimum 0.01 PAXG for redemption
- Physical delivery available for large amounts (contact Paxos)
Chain Support
Legal & Enforcement History
SEC
•LawsuitFebruary 13, 2023
Key Allegations
- •BUSD (Binance USD) is an unregistered security offered and sold by Paxos
Resolution
According to SEC statements dated February 13, 2023, the SEC announced enforcement action against Paxos alleging that BUSD was an unregistered security. Simultaneously, the NY Department of Financial Services ordered Paxos to cease minting new BUSD tokens. Paxos announced it would end its relationship with Binance for BUSD and stop issuing new tokens. As of February 2024, BUSD redemption continued but new issuance ceased.
NY Department of Financial Services
•Consent OrderFebruary 13, 2023
Key Allegations
- •Failure to supervise Binance USD (BUSD) issuance in accordance with Trust Charter requirements
- •Inadequate oversight of reserve management for BUSD
Resolution
According to NY DFS order dated February 13, 2023, Paxos was ordered to cease minting new BUSD tokens. The order cited concerns about Paxos' oversight of its relationship with Binance. Paxos was permitted to continue redemption operations and maintain existing BUSD reserves. The action did not impact USDP, PYUSD, or PAXG operations.
OCC
•InvestigationDecember 23, 2020
Key Allegations
- •Application for national fintech charter to provide custody and stablecoin services across all US states
Resolution
According to OCC public filings, Paxos applied for a national bank charter under the OCC's fintech charter framework. The application was denied in 2021. The OCC determined that Paxos' business model did not meet the requirements for a national bank charter at that time. Paxos continues to operate under NY State Trust Charter.
SEC
•SettlementOctober 16, 2019
Key Allegations
- •Request for no-action relief regarding Paxos Standard (USDP) stablecoin
Resolution
According to the SEC no-action letter dated October 16, 2019, the SEC Division of Trading and Markets granted no-action relief stating they would not recommend enforcement action if Paxos Standard tokens were sold as pre-paid units of account without registration. This was a landmark decision for stablecoin regulation in the United States.
NY Department of Financial Services
•SettlementMay 6, 2015
Key Allegations
- •Approval of first bitcoin-related Trust Charter in New York State
Resolution
Paxos (then itBit) was granted a limited liability Trust Charter by NY DFS, becoming the first bitcoin exchange to receive a formal state banking license. This established Paxos as a regulated financial institution under NY banking law.
NY Department of Financial Services
•SettlementMay 6, 2015
Key Allegations
- •Granting of BitLicense to itBit (now Paxos)
Resolution
Paxos received NY BitLicense simultaneously with Trust Charter, authorizing the company to conduct virtual currency business in New York State. This was among the first BitLicenses granted under the 2015 BitLicense framework.
Historical Timeline
7 events from 2015 to 2023
2015
NY Department of Financial Services
Settlement
Approval of first bitcoin-related Trust Charter in New York State
NY Department of Financial Services
Settlement
Granting of BitLicense to itBit (now Paxos)
2019
SEC
Settlement
Request for no-action relief regarding Paxos Standard (USDP) stablecoin
Gold Price Volatility Impact
According to Paxos documentation, PAXG value fluctuates with the price of physical gold. During periods of gold market volatility (such as March 2020 COVID-19 crash), PAXG experienced significant price swings following the underlying commodity. This is expected behavior for a gold-backed token but represents a departure from USD-stablecoin price stability.
ongoing2020
OCC
Investigation
Application for national fintech charter to provide custody and stablecoin services across all US states
2023
SEC
Lawsuit
BUSD (Binance USD) is an unregistered security offered and sold by Paxos
NY Department of Financial Services
Consent_order
Failure to supervise Binance USD (BUSD) issuance in accordance with Trust Charter requirements
Financial Incidents
No incidents recordedNo financial incidents on record
According to our research as of February 1, 2026
Banking Relationships
3 active, 3 terminated
Active Relationships
BNY Mellon
ActiveFollowing the 2023 banking crisis, Paxos established custody arrangements with BNY Mellon for USDP, PYUSD, and other token reserves. BNY Mellon is one of the world's largest custodian banks and provides institutional-grade custody services.
State Street
ActiveState Street provides custody services for Paxos reserves as part of post-2023 banking diversification strategy.
Brink's
ActiveBrink's provides vaulting services for PAXG physical gold reserves in London. Gold is held in allocated form - specific bar serial numbers are associated with PAXG token holdings. Brink's is a global leader in secure logistics and precious metals custody.
Terminated Relationships
Metropolitan Commercial Bank
TerminatedAccording to Paxos and Metropolitan Commercial Bank statements, the banking relationship was terminated in 2023 as Paxos diversified banking partners. The specific reserve amounts held at Metropolitan were not publicly disclosed, but the termination was described as routine business transition.
Metropolitan was a primary banking partner for Paxos since 2015. The termination followed broader industry consolidation after the 2023 banking crisis.
Signature Bank
TerminatedAccording to the New York Department of Financial Services announcement dated March 12, 2023, Signature Bank was closed by state regulators. Paxos held an undisclosed portion of reserves at Signature Bank. Paxos disclosed on March 13, 2023 that all customer funds remained secure and accessible through FDIC insurance.
Signature Bank was a significant crypto-friendly banking partner. The closure impacted multiple stablecoin issuers. Paxos diversified custody following this event.
Silvergate Bank
TerminatedAccording to Federal Reserve and FDIC announcements, Silvergate Bank voluntarily liquidated in March 2023. Paxos held limited operational funds at Silvergate. The bank was a major correspondent bank for crypto companies but represented a smaller portion of Paxos' reserve custody.
Silvergate provided operational banking services but was not a primary reserve custodian for Paxos stablecoins.
Audit History
No auditor change history on record
Current auditor: Withum
Historical Controversies
According to Paxos documentation, PAXG value fluctuates with the price of physical gold. During periods of gold market volatility (such as March 2020 COVID-19 crash), PAXG experienced significant price swings following the underlying commodity. This is expected behavior for a gold-backed token but represents a departure from USD-stablecoin price stability.
Gold-Backed Token
Related Stablecoins
Issuer
- Paxos Trust Company, N.A.(us • Trust Company)
- Paxos Issuance Europe Oy(fi • EMI (E-Money Institution))
- Paxos Global Pte. Ltd.(sg • Payment Services Provider)
- NY BitLicense (2015)
- NY Department of Financial Services Trust Charter (2015) - First bitcoin-related trust charter granted
- SEC No-Action Relief (2019) - For Paxos Standard stablecoin