Guide · Savers, hedgers, anyone metal-curious without a vault

How to hold and pay with tokenized gold and silver

Gold is the oldest settlement technology still running; tokenization is the newest rail for it. A tokenized ounce is a claim on allocated metal that nonetheless moves like a crypto asset - sent in seconds, held in your own wallet, divisible to a satoshi of a gram.

U.CASH carries the three liquid forms: PAXG and XAUt for gold, Kinesis KAG for silver. This guide covers what backs them, how the peg to the spot price works, and the practical moves: buying, holding, sending, and paying with metal.

You needCrypto to swap fromA wallet on a network carrying the form you choose (check the asset page)A view on whether metal belongs in your portfolio at all

Step by step

Every step, in order.

Step 01

Pick your metal and form

PAXG tracks one fine troy ounce of allocated gold per token; XAUt does the same from a different issuer; Kinesis KAG tracks silver. Each asset page states the issuer, the chain, and the redemption terms - the three facts that matter.

Step 02

Swap in

Buy metal the way you buy any token: swap from an asset you hold, at the quoted route with the all-in fee shown. The token settles to your wallet; there is no vault visit, no minimum, no dealer spread.

Step 03

Hold it your way

The token is your position: hold it in the same wallet as your other assets, send it, or split it into fractional amounts. The metal sits allocated in the issuer's vaults; the token is the title.

Step 04

Send or settle with it

Because it is a token, metal moves like one: pay an invoice that accepts it, send grams across the world in a transfer, or use it as the settlement leg where the counterparty wants metal exposure.

Step 05

Exit when you choose

Swap back to any asset, or redeem with the issuer per their terms - PAXG and XAUt both publish theirs. The on-chain exit is the fast one; the physical exit is the issuer's process, and the page says so.

The part that matters

The peg to spot is not magic; it is arbitrage. If the token trades under the ounce's value, buyers of last resort appear who can redeem for metal (or trust someone who will); over it, and minters issue new tokens against new metal until the premium dies. The same mechanism that keeps a stablecoin at a dollar keeps PAXG at an ounce, with the vault audit playing the reserve role. What differs from a stablecoin is what the reserve is: a physical commodity with its own storage costs, its own audit cadence, and - historically - its own regime risks. Issuer disclosure is therefore the whole game: who holds the metal, where, how often it is checked, and what redemption actually requires. U.CASH's asset pages carry those facts per form; read them before treating a token as an ounce rather than a bet on one. And keep the taxonomy straight: gold and silver tokens are commodity pegs, listed in their own families on the peg rankings, not stablecoins - they hedge a portfolio, not an invoice.

Go deeper

Stablecoins by peg (metal families)Gold currency pageSilver currency pagePAXG asset page

FAQ

Is a gold token actually backed by gold?
The liquid forms publish their backing: allocated metal in named vaults with audit schedules. That is the entire basis of the peg - and the reason the asset page links the issuer's terms rather than paraphrasing them.
Can I redeem physical metal?
Per issuer terms, yes for the major forms - that process, its costs, and its minimums are the issuer's, and each asset page points at them. The fast exit is always the on-chain one: swap into any asset.
Why hold metal as a token instead of an ETF?
Different tool: the token settles on weekends, sends peer-to-peer, divides fractionally, and lives outside brokerage hours and custodians. What it does not give you is the ETF's wrapper of custody and tax treatment - that trade is yours to price.
Is tokenized silver the same as gold?
Mechanically yes - KAG tracks allocated silver the way PAXG tracks gold - but silver's market is smaller and its price is the more industrial one. Same diligence habit: issuer, vault, audit, redemption.

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Six guides, one platform, every rail non-custodial.