Paxos Labs Launches Gold Token That Can Earn A | Crypto News
- Paxos Labs has launched PAXGy, a token backed by PAXG that can increase in worth relative to gold over time.
- The underlying reserves are deployed to vetted institutional debtors through the gold-leasing market.
- PAXGy is live across platforms including OKX, X Layer, Uniswap, 0x and Ether.Fi, but the return isn’t assured.
**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/weblog
The Token Balance Stays The Same While Its Gold Value Can Grow
PAXGy is backed by PAXG.
Each PAXG represents bodily gold held in institutional custody, with the underlying reserves subject to common attestation.
PAXGy provides another layer.
Paxos Labs says holders can deposit PAXG or swap supported stablecoins for PAXGy.
The reserves backing PAXGy can then be lent to vetted institutional debtors in the bullion market.
When those methods generate a return, that worth accrues through the PAXGy exchange fee.
The holder’s quantity of tokens doesn’t have to increase.
Instead, each PAXGy can grow to be redeemable for more PAXG over time.
That is a very different model from merely holding tokenized bullion.
Yield Also Introduces Risk That Plain Gold Does Not Have
There is no free yield right here.
Paxos Labs explicitly warns that deploying gold into exterior methods introduces credit, liquidity and market dangers.
If debtors default or the underlying methods endure losses, the PAXGy exchange fee can transfer downward.
Growth isn’t assured.
That distinction issues because PAXG and PAXGy might sound nearly equivalent while representing different risk profiles.
PAXG is designed around direct publicity to bodily gold.
PAXGy provides a yield-generating strategy on top of that publicity.
The token is launching with help from OKX, X Layer, 0x, Uniswap, Ether.Fi and Chainlink.
Paxos Labs says tokenized gold has now grown past $5 billion in complete worth, while trading quantity during the first quarter of 2026 exceeded the entire of 2025.
PAXGy is an attempt to make that market more financially productive.
Instead of tokenizing gold merely so it might transfer onchain, the product tries to join it to a centuries-old lending market as nicely.
It is another instance of tokenization beginning to recreate financial capabilities around an asset, not merely digitize possession of it.
*This article was written by the News Desk and edited by [Samuel Rae](https://www.newsbtc.com/writer/rae-samuel/).*
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