Paxos is a Trust Company regulated by the New York State Department of Financial Services (NYDFS). When assets are placed into our custody, it's held bankruptcy remote and in completely segregated accounts. The assets backing your tokens will still be in your benefit.
PAX Gold Insurance
Our vault provider maintains insurance against loss of the gold held in custody by Paxos for the benefit of PAX Gold token holders. As such, allocated gold-backed PAX Gold tokens are protected both in the vault facilities and in transit.
As a Paxos customer, you are eligible for FDIC pass through insurance for USD or USD-backed stablecoins held in your Paxos Wallet account, up to $250,000. If you wish to sign up for FDIC pass through insurance for PAX or BUSD held in an external address, please reach out to www.paxos.com.
USD-backed stablecoins are held in US Treasury Bills and FDIC Insured bank accounts up to $250,000.