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      Paxos Labs and Theo Launch Yield-Bearing Tokenized Commodities

      Paxos Labs and Theo are introducing yield-bearing tokens for gold and silver, aiming to transform idle metal into productive assets in a market valued at over $5 billion. Paxos Labs launched its token, PAXGy, on September 24, 2026, which is backed by its existing tokenized gold product, PAXG. This new offering leverages institutional gold leasing to gradually increase gold reserves.

      Theo, which launched its tokenized gold product, thGOLD, in January 2026, has also expanded its offerings. In September 2026, the firm introduced tokenized silver backed by $40 million in active leases, applying its successful gold lending model to silver. The trading volume for tokenized gold reached $90.7 billion in the first quarter of 2026, surpassing the total for all of 2025, indicating significant growth in this sector.

      As of October 2026, over 450,000 wallets are holding tokenized commodities, reflecting a year-over-year increase. The introduction of yield-bearing tokens like PAXGy and thGOLD emphasizes the potential for decentralized finance (DeFi) applications, allowing these tokens to serve as collateral or liquidity while generating income. This innovation could democratize access to gold leasing, traditionally reserved for institutional players, and attract a broader audience, including retail investors.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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