Paxos Labs Launches PAXGy, a PAXG-Backed Token that Grows in Gold Terms

PAXGy holdings grow in Troy ounce terms. Reserve assets are deployed in the multi-billion dollar institutional gold leasing market that has set bullion lending rates for decades. Powered by our cohort of launch partners OKX, X Layer, 0x, Uniswap, Ether.Fi, and Chainlink.

NEW YORK, Sept. 24, 2026 /PRNewswire/ -- Paxos Labs, the enterprise-grade digital asset infrastructure provider, today announced the launch of PAXGy, a gold-backed token that accrues in gold terms built on PAX Gold (PAXG). PAXG is the only federally regulated tokenized gold asset, fully backed by investment grade gold held in LBMA vaults and independently attested by KPMG. Holders deposit PAXG, or swap accepted stablecoins and receive PAXGy, which accrues value to an exchange rate denominated in gold terms. PAXGy is live on OKX as the only centralized exchange listing at launch and across onchain platforms including X Layer, 0x, Uniswap and Ether.Fi. Chainlink's CCIP is the exclusive cross-chain messaging provider, so holders can move a PAXGy position across chains without unwinding it first.

"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." said Bhau Kotecha, Co-Founder of Paxos Labs.

Lending metal for a return predates money itself, and its institutional form has set daily lease rates for four decades. Refiners, jewelry manufacturers, miners and bullion banks still borrow gold today rather than buy it outright, paying a lease rate quoted in gold. Central banks hold close to a fifth of all the gold ever mined, and in the World Gold Council's 2026 survey, 37 percent said they actively manage those reserves through lending and swaps. That market has always run on institutional rails, with minimum sizes, bilateral bank relationships and settlements built for a few hundred participants. Meanwhile, roughly $530 billion of gold sits in ETFs whose investors pay an annual fee of up to 40 basis points to hold a metal that earns them nothing in return.

Tokenization has changed what is possible. Tokenized gold now exceeds $5 billion in value and traded $90.7 billion in the first quarter of 2026, surpassing all of 2025 combined. Turning an ounce into a token makes it divisible, transferable and programmable, pooling those fractions into an institutional-size position is what brings the lending market within reach of a holder of any size.

The gold behind each token is deployed to a network of vetted institutional borrowers through the same leasing market that has set bullion lease rates for decades. As the reserves underlying PAXGy are deployed, value accrues to the PAXGy exchange rate so each PAXGy comes to be worth more PAXG over time. PAXGy is designed so that holders can exit positions with more notional ounces of gold than their principal amount, unlocking direct onchain access to the world's oldest store of value.

"Gold is the oldest reserve asset in the world, and holding it has always incurred a cost. As the issuer of PAXG, we made gold move at the speed and transparency of the blockchain. PAXGy makes it work like capital," said Walter Hessert, Head of Strategy at Paxos.

"Gold is often the first asset people reach for when they want to preserve value, and one of the few that crosses between traditional finance and crypto without needing explanation. What it has never done is earn. We wanted our customers to have that on day one, through X Layer on day one & eventually the exchange, whichever way they prefer to hold it," said Jason Lau, Chief Innovation Officer at OKX.

PAXGy is available today through OKX Gold Earn and X Layer, and onchain across Uniswap, 0x and Ether.fi, with additional venues expected to follow.

For additional information, please visit paxgy.com 

ABOUT PAXOS LABS
Paxos Labs is the enterprise-grade digital asset infrastructure provider that gives platforms the tools to mint, move and monetize digital assets. Transit, is a single integration for routing, settlement and liquidity across stablecoins. Paxos Labs recently launched PAXGy, a PAXG-backed gold asset that grows in gold terms. Incubated within Paxos and built on its $230B+ track record in tokenization and more than a decade of regulatory expertise, Paxos Labs brings institutional trust and rigor to the integration layer that makes digital assets composable and accessible for the platforms building on them.

This document is for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy any asset. A purchase of PAXGy involves credit, liquidity, and market risks. The asset accrues value by deploying its reserves into external strategies, but growth is not guaranteed; if these strategies suffer losses or borrower defaults, the exchange rate may be adjusted downward, potentially resulting in losses. Because PAXG and PAXGy are gold-tracking instruments, the fiat value of PAXGy holdings is exposed to the market volatility of physical gold.. This document is not directed at any person in any jurisdiction where its publication or availability is prohibited or would be unlawful.

For more information visit paxoslabs.com

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SOURCE Paxos Labs