Gold-backed stablecoins: how they work and are they safe
Most stablecoins track a fiat currency. A gold backed stablecoin tracks gold instead — its value follows the metal, not the dollar. Because AYNI pays rewards in a gold-backed token, the distinction matters.
AYNI Gold — key figures
The product behind this site — AYNI Gold: real, gold-denominated yield from a licensed Peruvian gold operation, paid in PAXG.
*Target Variable Reward is a target, not a guarantee; actual rewards vary and may be zero.
What is a gold-backed stablecoin?
A gold-backed stablecoin is a token whose value is pegged to gold and backed by real, vaulted metal — typically one token per ounce or gram. PAXG is the best-known example. It is “stable” relative to gold, not to fiat.
Gold-backed stablecoin vs fiat stablecoin
A fiat stablecoin (USDC, USDT) holds its dollar value but inflates with the dollar. A gold-backed stablecoin holds gold value, which historically preserves purchasing power. One tracks a currency that debases; the other tracks a hard asset.
Are gold-backed stablecoins safe?
Safety comes down to the backing: is the gold allocated and audited, who custodies it, and is the token redeemable? A gold-backed stablecoin with a regulated custodian (as with PAXG at Paxos) and clear redemption is structurally stronger than an unaudited one.
How AYNI fits
AYNI does not issue a stablecoin — it pays its rewards in PAXG, a gold-backed token. So your AYNI return is denominated in gold, giving the hard-asset stability a gold-backed token provides.
Gold value over time (annual average, USD/oz, LBMA) — what a gold-backed token tracks, unlike a static dollar. Illustrative.
Gold vs dollar calculator
A dollar stablecoin keeps its dollar value; a gold-backed token tracks gold. See what an amount put into gold in a past year would be worth at the 2024 gold price — versus a flat dollar stablecoin.
"Now" = 2024 annual average gold price (~$2,386/oz, LBMA). Past performance is not a guarantee; gold can fall. Excludes fees and inflation. Not investment advice.
| — | Gold-backed (e.g. PAXG) | Fiat stablecoin (USDC/USDT) |
|---|---|---|
| Pegged to | Gold (per ounce) | US dollar |
| Inflation | Tracks a hard asset | Erodes with the dollar |
| Backing | Allocated gold in a vault | Cash + short-term reserves |
| Yield | None alone (AYNI adds it) | Often via lending / T-bills |
FAQ
- Is a gold-backed stablecoin better than a dollar stablecoin?
- Different goals. A gold-backed stablecoin hedges fiat debasement and tracks gold; a dollar stablecoin keeps a stable dollar value. Gold-backed suits those who want a hard-asset peg.
- Is PAXG a gold-backed stablecoin?
- PAXG is a gold-backed token — each is backed 1:1 by a physical ounce held at Paxos. It is 'stable' relative to gold rather than to fiat.