Tokenized gold compared: PAXG, XAUT and KAU
Tokenized gold is the simplest RWA category to reason about, which is exactly why it is useful. There is one underlying asset, so the interesting differences are all operational: who holds the physical metal, whether you can redeem it, and what you pay to hold the token.
Who this is for: Readers comparing tokenized gold as an alternative to a vaulted product or an ETF, and sponsors evaluating the category.
The decisive question is the redemption path, not the token price. A token you can redeem for physical metal and a token that only tracks its price are different products, even when the chart looks identical.
The comparison
3 options| Option | Issuer | Where the metal sits | Redemption | Networks | Holding cost | Where to verify |
|---|---|---|---|---|---|---|
| PAXG (Paxos Gold) | Paxos | Allocated physical gold held by a custodian, with published attestations | Redemption available to eligible holders through the issuer, subject to minimums and terms | Ethereum-compatible networks | On-chain transfer cost plus the issuer's terms on issuance and redemption | Issuer product page and attestation reports |
| XAUT (Tether Gold) | Tether | Physical gold held in a named vault location, per the issuer's description | Redemption terms defined by the issuer | More than one network | On-chain transfer cost plus the issuer's terms | Issuer product documentation |
| KAU (Kinesis Gold) | Kinesis | Allocated gold held in vaults operated within the issuer's network | Redemption offered through the issuer's own channels | Its own chain plus Ethereum-compatible networks | Issuer-defined fees on the platform | Issuer documentation and platform terms |
A dash means the detail was not confirmable from public documentation at the review date. Treat every cell as a pointer to the primary document, not as a substitute for reading it.
Why each option is in the table
More in Tokenized Gold →PAXG (Paxos Gold)
Why it is here
The clearest redemption story in the category, with attestation reporting published by the issuer for independent inspection.
What to watch
Redemption has minimums and process steps. Read the terms before assuming you can convert a small balance into metal.
XAUT (Tether Gold)
Why it is here
Exposure to the same issuer that runs the largest stablecoin, which some readers take as an operational familiarity signal.
What to watch
The same issuer-attestation questions that apply to its stablecoin apply here. Read the issuer's own reporting rather than a summary of it.
KAU (Kinesis Gold)
Why it is here
An example of a product built around its own chain and payment network rather than as a token on an established one.
What to watch
A proprietary chain and platform means fewer independent venues to check behaviour against. That raises the value of reading the terms carefully and lowers the value of liquidity claims.
Common questions
How is tokenized gold different from a gold ETF?
An ETF is a security traded on a regulated exchange with defined market hours and a custodian disclosed in a prospectus. A gold token trades continuously and its redemption rights depend on the issuer's terms. The underlying asset is the same; the legal wrapper and the exit path are not.
Can I take delivery of the physical gold?
Sometimes. Redemption terms vary by issuer and typically come with minimum quantities, identity checks and fees. Confirm the terms for the specific product before treating delivery as an available feature.
What should I check in the attestation?
The date, the auditor, the total ounces reported versus tokens outstanding, and the named vault location. A report that only states a total without the comparison to outstanding tokens does not tell you much.
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