Start by asking whether the issuer will accept a redemption request from you, for the amount you hold and at a location you can use. An exchange listing does not answer any of those questions.
Start by asking whether the issuer will accept a redemption request from you, for the amount you hold and at a location you can use. An exchange listing does not answer any of those questions.
Comparison at a glance
| Token | What the issuer documents | What to confirm before relying on delivery |
|---|---|---|
| PAXG | Paxos documents physical gold redemption and publishes information on creation, conversion and redemption. | Eligible account type, minimum balance, bar format, fees and handover arrangements. |
| XAUt | Tether Gold documents verified-user requirements and a physical redemption process linked to allocated bars. | Current bar-weight requirement, collection or delivery options, and all-in cost. |
| XAUm | Matrixdock reports a completed physical redemption. | Whether that route is available to your account and location today, and at what minimum and cost. |
Follow the token all the way to handover
Separate three transactions in your notes: buying a token, selling it for cash or stablecoins, and handing it to the issuer for metal. They may have different counterparties and conditions. An exchange may let you buy a small amount without providing any delivery service. An issuer may require onboarding and more tokens than you hold. A cash redemption also does not establish that you can collect a bar.
Ask for a written quote
Give each issuer the same delivery location, account type and token balance. Request the minimum, accepted network, redemption fees, transport and insurance arrangements, and the point at which responsibility for the metal transfers. Ask what happens if verification fails after a request is opened. A historical whitepaper or announcement can establish that a process exists; it cannot substitute for current account terms or a current quote.
For the separate question of choosing infrastructure to issue or integrate metal tokens, see VNX vs Meld Gold vs Kinesis.
Primary sources
- Paxos, PAXG documentation: https://docs.paxos.com/guides/stablecoin/paxg
- Tether Gold, whitepaper: https://gold.tether.to/Tether%20Gold%20Whitepaper.pdf
- Matrixdock, announced physical redemption: https://www.matrixdock.com/blog/announcements/matrixdock-completes-first-ever-physical-redemption-of-tokenized-gold
Ask for a written redemption quote before transferring tokens
Give each issuer the same scenario: the holder's jurisdiction, the token quantity, and the desired delivery or collection location. Ask for the minimum token amount, any bar-size constraint, the fee basis and when the quote expires. Separate issuer redemption from selling tokens on an exchange. An exchange minimum does not tell you what the issuer requires for physical handover.
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