NewsBTC
2 hours ago
Neutral

Paxos Labs launches PAXGy offering potential gold returns through lending

2 min
  • Paxos Labs launched PAXGy, a token backed by PAXG, designed so its value relative to gold can increase over time via lending strategies.
  • Reserves are deployed to vetted institutional borrowers through the gold-leasing market, with returns accruing through PAXGy’s exchange rate.
  • PAXGy is live on OKX, X Layer, Uniswap, 0x and Ether.Fi. Returns are not guaranteed and the exchange rate can decline if strategies lose value.

ID: N25-09

Site: NewsBTC

Status: READY

Author: NewsBTC Editorial Team

Focus Keyword: Paxos

Image Keyword: Gold

Category: Altcoins

Tags: Paxos, PAXG, PAXGy, Gold, Tokenization

Primary Source: https://www.paxos.com/blog

The Token Balance Stays The Same While Its Gold Value Can Grow

PAXGy is backed by PAXG. Each PAXG corresponds to physical gold held in institutional custody, with reserves under regular attestation. PAXGy adds a yield layer: holders can deposit PAXG or swap supported stablecoins for PAXGy. Paxos Labs deploys the reserves to vetted institutional borrowers in the bullion market. When strategies generate returns, value accrues via the PAXGy exchange rate. The token count does not need to change. Each PAXGy can become redeemable for more PAXG over time. This differs from holding tokenized bullion without yield.

Yield Also Introduces Risk That Plain Gold Does Not Have

Paxos Labs states that deploying gold into external strategies adds credit, liquidity and market risks. If borrowers default or strategies incur losses, the PAXGy exchange rate can decline. Growth is not guaranteed. PAXG offers direct exposure to physical gold. PAXGy layers a yield-generating strategy on top of that exposure.

The token launches with support from OKX, X Layer, 0x, Uniswap, Ether.Fi and Chainlink. Paxos Labs reports tokenized gold surpassing $5 billion in total value, with first-quarter 2026 trading volume exceeding the total for 2025. PAXGy connects tokenized gold to the bullion lending market, extending tokenization from digitized ownership to integrated financial functions.

This article was written by the News Desk and edited by Samuel Rae.