Let deepResearch help me create a research report on PAGX - Gold Token: 1 - The London Good Delivery gold bars custodied by Paxos Gold (PAXG) are under **"Allocated Storage"**, not "Unallocated Storage". ✅ What is "Allocated Storage"? In the gold market, "Allocated Storage" means that each piece of gold has a specific allocation and serial number. The physical gold bars are registered under the holder's name, stored separately in a vault, and can be traced to specific bar serial numbers. This ensures: - The ownership of the gold belongs to you, not the custodian; - The gold bars are exclusively stored and not shared with others; - Even if the custodian or platform goes bankrupt, the gold will not be used to repay debts; - You can check the specific gold bar serial number and storage vault corresponding to your PAXG through the system provided by Paxos. 🔒 PAXG is fully "Allocated Gold" Paxos explicitly states that the gold backing PAXG is "allocated London Good Delivery bars," meaning allocated London Good Delivery gold bars. This gold: - Is stored in Brink's vaults in London; - Is separately registered under the name of Paxos Trust Company; - Each unit of PAXG can be traced back to a specific gold bar (users can check their gold bar information on the official website). 🚫 What does "Unallocated Storage" mean? "Unallocated Storage" refers to gold stored in a vault but not allocated to specific customers. This type of gold is more like a bank's "receivables," where customers hold claims rather than specific physical gold. This storage method is common in the gold derivatives market (e.g., paper gold, certain bank precious metal accounts) and may face "runs" or "asset shortages" during systemic risks. Conclusion: The gold custodied by PAXG is **100% Allocated Storage** London Good Delivery gold bars, offering the strongest legal protection and ownership clarity. Compared to unallocated storage or paper gold, this model provides holders with the highest level of security and sovereign control. 2 - XAU is also under allocated storage. However, there are significant differences between PAXG and XAU, especially at the legal entity level: - PAXG is a compliant financial product, where U.S. investors have clear beneficiary status protected under the "Trust Law"; - The legal ownership of XAU₮ is ambiguous, making it difficult for investors to claim ownership of physical gold in court. It is more like "you trust Tether to hold it for you." See the detailed chart for more information. Finally, Tether Gold (XAU₮) and USDT are two sub-brands/subsidiaries under the same parent company group (iFinex Inc.), but they are legally and asset-wise independent and do not bear each other's liabilities. As a result, PAGX generally has a premium over XAU.