Institutional-grade infrastructure platform Paxos Labs has launched PAXGy, a gold-backed token built on PAX Gold (PAXG) that accrues in gold terms. From day one, PAXGy leverages Chainlink Price Feeds for reliable onchain pricing and Cross-Chain Interoperability Protocol (CCIP) as its exclusive cross-chain infrastructure.
Incubated by regulated blockchain and tokenization firm Paxos, Paxos Labs provides enterprise-grade infrastructure that allows platforms to mint, move, and monetize digital assets. With a market cap over $1.8 billion, PAXG is the only federally regulated tokenized gold asset, fully backed by investment-grade gold held in LBMA vaults and independently attested by KPMG.
PAXGy is now live on OKX and across X Layer, 0x, Uniswap, and Ether.Fi, with more venues to follow. Holders deposit PAXG or swap accepted stablecoins and receive PAXGy, which accrues value to an exchange rate denominated in troy ounce terms. Reserve assets are deployed in the multibillion-dollar institutional gold leasing market that has set bullion lending rates for decades.
The tokenized gold market, which now exceeds $5 billion, enriches the world’s oldest financial asset with added onchain utility including fractionalization, composability, and programmability. With all-time high investments in global gold-backed ETFs worth $615 billion, PAXGy brings the benefits of institutional bullion leasing to holders of any size.
In an official announcement, Paxos Labs’ co-founder, Bhau Kotecha, said, “Gold has been lent for thousands of years, and institutions have earned on their bullion reserves for decades. That market has never been accessible to ordinary holders of gold globally. 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.”
“As the issuer of PAXG, we made gold move at the speed and transparency of the blockchain,” added Walter Hessert, Head of Strategy at Paxos. “PAXGy makes it work like capital.”