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Is PAX Gold (PAXG) halal?

Questionable

No condition fails, but 1 point remains to be verified or falls under a tolerated case.

Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/05/2026 and not reviewed by a human.

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The asset

token backed by physical gold Issuer: Paxos Trust Company (a US trust company, regulated by the OCC according to Paxos).

ERC-20 token in which each unit represents, according to the issuer, one fine troy ounce of gold from a London Good Delivery bar held in LBMA-approved vaults in London by Paxos Trust Company. About 435,000 tokens were in circulation on October 5, 2026 according to CoinGecko, at a price of 4,149.99 USD.

Why this verdict

  1. Permissible purpose : met. PAXG gives access to physical investment gold: each token corresponds to one fine troy ounce of gold, which the issuer says it holds in a vault in London. No gambling purpose, interest-bearing loan or impermissible content is found.
    • « PAXG offers investors a cost-effective way to own investment-grade physical gold with all the benefits of the blockchain. » Paxos (page Pax Gold) (2026-10-05)
    • « Each PAXG token is equal to one fine troy ounce of London Good Delivery gold. » Paxos (PAX Gold terms) (2026-10-05)
  2. No riba : met. The terms and the issuer's page read provide no interest or return for the holder; Paxos states zero storage fees and its revenue would come from creation and transaction fees. The issuer may change its fees at any time.
  3. No gambling : met. A spot purchase is of a token that represents a share of physical gold held on behalf of the holders, transferable on Ethereum (88,243 holding addresses) and convertible into dollars; it is not a bet on a price difference with no purchase or delivery.
    • « PAXG tokens represent fractional ownership of London Good Delivery gold bars, which are held by Paxos Trust on a segregated basis » Paxos (PAX Gold terms) (2026-10-05)
    • « Redeem for USD at current gold market prices at any time. » Paxos (page Pax Gold) (2026-10-05)
  4. No excessive gharar : met. Rights, issuance rules and conditions for delivery of the gold are documented; the contract has a single address authorized to create and destroy tokens according to gold movements, and KPMG examines the reserves monthly under AICPA standards. The attestation reports themselves could not be opened (links loaded by script), and physical delivery requires at least 430 PAXG per bar.
    • « Each Pax Gold (PAXG) token is backed by one fine troy ounce of gold, stored in LBMA vaults in London. » Paxos (page Pax Gold) (2026-10-05)
    • « Attestation reports posted on or after February 28, 2025 are issued by KPMG LLP, an independent third-party accounting firm. » Paxos (attestations PAX Gold) (2026-10-05)
  5. Real ownership : met. PAXG is held in a personal Ethereum or Solana wallet and the holder can find the serial number and weight of their gold with their address; Paxos, however, retains the power to freeze, seize and update tokens, and delivery of physical bars is open only from 430 PAXG, after checks.
    • « If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company. » Paxos (page Pax Gold) (2026-10-05)
    • « Look up the serial number, weight and vault information of your gold using your wallet address. » Paxos (page Pax Gold) (2026-10-05)
  6. No fraud or manipulation : to be verified or tolerated case. Paxos Trust Company agreed in August 2025 to a settlement with the NYDFS ($26.5 million civil penalty and a commitment of at least $22 million for its compliance program) for due diligence failures regarding its former partner Binance and its anti-money-laundering program; the settlement does not concern PAXG or any deception of buyers, but is a sanction of the issuer on other grounds.
    • « Paxos consented to a $26.5 million civil penalty and to commit a minimum of $22 million to strengthen its compliance program. » Morrison Foerster (2025-08-12)
    • « Paxos must pay a $26.5 million civil monetary penalty to the State of New York » Cozen O'Connor (2025-08)

Contract security scan

GoPlus security scan of the PAXG contract on Ethereum: 88,669 holders; top ten wallets excluding exchanges and contracts 35%; code published. Signals found: Contract modifiable through a proxy: the code can change after the fact (is_proxy). Reading: Identified, regulated issuer (Paxos Trust Company, NYDFS): the modifiable contract is a regulated issuer's practice, not a rug pull signal under rule A.8.

Opinions found during the research

Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.

What could not be verified

Sources read

Other cryptos analyzed

General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology