Paxos Labs has launched PAXGy, a token backed by PAXG which represents physical gold held in institutional custody. The underlying reserves are lent to vetted institutional borrowers in the gold-leasing market, and the returns generated accrue through the PAXGy exchange rate, allowing each token to be redeemable for more PAXG over time. The token is live on OKX, X Layer, Uniswap, 0x and Ether.Fi, but Paxos Labs warns that returns are not guaranteed due to credit, liquidity and market risks. The tokenized gold market has grown beyond $5 billion in total value, with trading volume in Q1 2026 exceeding the full year of 2025.
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