Paxos Launches PAXGy Token to Bring Institutional Gold Lending On‑chain

Paxos Labs announced the launch of PAXGy on September 24, 2026. The new token is backed by Pax Gold (PAXG) and is designed to capture returns from the institutional gold‑leasing market that has been quoted daily for the past 50 years.

How PAXGy Works

Unlike traditional gold‑ETF holdings, which charge fees and do not generate income, each PAXGy token is intended to appreciate against PAXG. Holders can redeem a PAXGy for more ounces of gold than they initially received if the underlying leasing strategy produces the expected returns.

Market Context

• Gold leasing rates have been published every working day for five decades, but access has been limited to large institutions.
• Approximately $530 billion of gold is held in exchange‑traded funds, with fees up to 40 basis points.
• Tokenized gold markets have grown to a $5 billion market cap and recorded $90.7 billion in trading volume in Q1 2026.

Availability and Infrastructure

PAXGy is live on several platforms, including OKX Gold Earn, Uniswap, X Layer, 0x, and Ether.Fi. Cross‑chain movement is facilitated by Chainlink’s CCIP protocol, allowing positions to shift between supported blockchains without unwinding.

What to Watch

The token’s performance will depend on the underlying institutional gold‑leasing activity, not on any intrinsic income generated by the gold itself. Observers will monitor whether the tokenized approach expands participation in this historic lending market.