Tokenized gold is a type of stablecoin that pegs its price to gold, while the tokens on the blockchain represent ownership of physical gold managed by the issuer. Paxos operates an entity called PAXG, which the firm says offers investors a way to own investment-grade physical gold while using the blockchain. Each Pax Gold (PAXG) token is backed by one fine troy ounce of gold, stored in LBMA vaults in London. With this huge gap in financial participation – often concentrated in lower income countries – economic and societal development is severely stunted. This is largely a symptom of gold, in its physical form, being far too expensive and inaccessible for many lower income countries.