Part 6/9:
While Paxos has established itself as a pioneer in the tokenized gold space, it faces competition from newer entrants such as Tether's XAUT. Though both provide a similar structure—each token backed by one troy ounce of gold—the two differ significantly in transparency and regulation.
Paxos is regulated by the New York State Department of Financial Services and emphasizes robust auditing practices. In contrast, Tether's lack of transparency raises questions among investors about the actual custody and verification of the assets backing its tokens.