Coins backed by gold are a new variety of stablecoins. Stablecoins, as we know, are pegged to dollar or to a real world commodity. This tames the volatility of cryptos. Stablecoins have been used to move the funds around as it is easier to swap these with traditional money.

PAXG or PaxGold and Tether Gold are gold-backed stablecoins. These have tracked the price of physical gold. They are literally just IOUs that incidentally use blockchain infrastructure. They are both synthetic gold exposure backed by gold holdings. They enable you to own gold without the need to store it in physical form, say a coin or bar.

PAXG requires a minimum investment of the equivalent of 0.01 ounce of gold. Its current value is roughly $20.

Gold-backed cryptos boost up the credibility of cryptos.