Paxos Labs Launches PAXGy With a Gold-Leasing Strategy
The PAXG-backed token is designed to represent more gold over time while its token balance remains constant.
Paxos Labs launched PAXGy on Thursday, Sept. 24, a Pax Gold (PAXG)-backed token designed to represent more gold over time through a gold-leasing strategy.
The token balance is intended to remain constant while each PAXGy represents an increasing amount of PAXG. Users can deposit PAXG or swap accepted stablecoins for PAXGy.
PAXGy launched on OKX, its only centralized-exchange listing, as well as X Layer, 0x, Uniswap and Ether.Fi. Chainlink’s Cross-Chain Interoperability Protocol is the exclusive cross-chain messaging provider.
PAXG represents one fine troy ounce of London Good Delivery gold held in London vaults. PAXGy adds lending exposure to that gold-backed asset, with reserve assets deployed through the gold-leasing market to vetted institutional borrowers.
“Gold has been lent for thousands of years, and institutions have earned on their bullion reserves for decades,” said Bhau Kotecha, co-founder of Paxos Labs.
Tokenized gold exceeded $5 billion in value and recorded $90.7 billion in trading during the first quarter of 2026, more than during all of 2025.
The disclosure includes credit, liquidity and market risks. Growth in PAXGy’s exchange rate is not guaranteed, and borrower defaults or losses in external strategies could push the exchange rate lower.
“PAXGy brings its economics to a token anyone can hold, with the assets in the reserve growing in ounce terms, redeemable for PAXG at any time,” Kotecha said.
