GOLD HOLDERS CAN NOW EARN GOLD ON THEIR GOLD — VIA A BRAND NEW TOKEN LAUNCHED THIS WEEK
Paxos Labs launched PAXGy on September 24 — a new token built on $PAXG that deploys reserves into the institutional gold-leasing market to generate yield measured in troy ounces rather than dollars. Holders deposit PAXG or eligible stablecoins like $USDC and receive PAXGy, which accrues value against an exchange rate denominated purely in gold terms.
The mechanism: institutions have quietly earned yield lending physical gold reserves for decades, a market previously closed to ordinary holders. PAXGy pools retail participation into that same leasing market, so a holder's token balance stays constant while the PAXG each token redeems for grows over time.
Launch partners: OKX, Uniswap, Ether.Fi, and $LINK's Chainlink all support PAXGy, with Chainlink powering cross-chain infrastructure and price feeds. PAXG itself is backed by 1.8 billion dollars in LBMA-certified gold, attested by KPMG.
The risk Paxos flags directly: this isn't free yield. Deploying gold into external lending introduces credit and market risk — if borrowers default, the exchange rate can move downward, unlike $ETH-based tokens that simply track an asset directly. This launches the same week $BTC traded through a volatile session.