Token Description & Project Background

PAXG is an ERC-20 token that is a digital representation of physical gold.

Each PAXG token represents one fine troy ounce of a London Good Delivery gold bar.  This physical gold is stored in LBMA vaults in London. The value of PAXG tracks with the real-time market price of gold. 

If a user holds more than 430 oz in PAXG, they can redeem their tokens for a physical gold bar. 

The Paxos Trust Company has positioned PAXG as a “cost-effective way to own investment grade physical gold”.

PAXG is issued by Paxos Trust Company LLC, which is regulated by the NY State Department of Financial Services.

PAXG is kept separately from the company's assets and does not become part of the company’s estate in the event of insolvency. 

Paxis Trust Company  was established in 2012 with over $500M in funding from investors such as Oak HC, Mithril Capital and Paypal Ventures. 

The project was founded by Charles Cascarilla (CEO) and Rich Teo. According to the project’s website Cascarilla has “more than 20 years of experience in financial services”, and co-founded Cedar Hill Capital Partners in 2005, and its venture capital subsidiary, Liberty Ventures, in 2012. Cascarilla started his career as an analyst at Goldman Sachs and Bank of America Securities, and is a CFA charterholder.

Rich Teo served in the Singapore Armed Forces, and later worked as an investment banking analyst in the Financial Services M&A group at Citi, and as Principal / Senior Analyst at Cedar Hill Capital Partners. 

Risks of PAXG

Like an investment in other crypto assets, there are some general risks to investing in PAXG. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in PAXG is subject to the following specific risks:

• Any potential success associated with the PAXG token depends on the price action of the underlying physical gold.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with PAXG. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

Paxos Trust LLC and its founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of PAXG have no recourse to Paxos Trust LLC, its founding team, or Uphold if PAXG declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing PAXG on the Uphold Platform, Uphold performed due diligence on PAXG and determined that PAXG is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, usage, and design of PAXG, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of PAXG.
• Any marketing materials put forward by the PAXG social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with PAXG, including any code defects, security breaches and other threats concerning PAXG and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with PAXG, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of PAXG. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.