Paxos Labs Launches PAXGy, a New Gold-Backed Token
On September 24, 2026, Paxos Labs introduced PAXGy, a new token designed to enhance the value of gold investments. This innovative product builds on the existing PAX Gold (PAXG) framework, allowing investors to not only hold gold but also to accumulate more over time through participation in institutional gold leasing markets.
PAXGy operates by utilizing reserves from the institutional gold leasing market, where large entities lend physical gold to generate returns. Investors can acquire PAXGy by swapping either PAXG or select stablecoins, with each token fully redeemable for PAXG. The underlying gold is securely stored in LBMA-approved vaults managed by Brink's and is subject to monthly audits by KPMG, ensuring compliance and security.
The token is designed for cross-chain functionality, leveraging Chainlink's Cross-Chain Interoperability Protocol (CCIP) to facilitate seamless movement across different blockchain networks. PAXGy was launched on the OKX centralized exchange and various on-chain platforms, including Uniswap and Ether.fi, marking a significant step in making gold investment more accessible to retail investors.
Paxos Labs, which became a standalone entity in mid-2025, aims to democratize access to financial markets. The launch of PAXGy is part of its broader strategy to develop a suite of digital asset products that provide yield and utility, with PAXGy being the first major offering from this initiative. This new token allows individual investors to engage in a market traditionally dominated by large banks and sovereign wealth funds, enabling them to earn returns on their gold holdings without converting to fiat currency.
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Source: KLEA News