Paxos Labs launched PAXGy on September 24, 2026, as a PAX Gold-linked token designed to increase the amount of PAXG holders can redeem as its reserves earn income from institutional gold leasing. Users can deposit PAXG or swap accepted stablecoins for PAXGy, while returns accrue through a rising PAXGy-to-PAXG exchange rate rather than additional tokens in their wallets. Paxos Labs says it places reserves with vetted institutional gold borrowers, including refiners, jewelry makers, miners and bullion banks. The launch seeks to give token holders access to a lending market that has historically depended on large institutional minimums, bullion-bank relationships and specialized settlement systems. Paxos Labs estimates that about $530 billion of gold is held through exchange-traded funds, while tokenized gold has exceeded $5 billion in market capitalization and recorded $90.7 billion in first-quarter 2026 trading volume. PAXGy launched through OKX Gold Earn, X Layer, 0x, Uniswap and Ether.Fi, with Chainlink's Cross-Chain Interoperability Protocol serving as its exclusive messaging provider for transfers across supported networks. The product carries credit, liquidity and market risks: borrower defaults or losses in reserve strategies can reduce the PAXGy-to-PAXG exchange rate, while a falling gold price can erase dollar gains even if the rate rises.