Paxos Labs has launched PAXGy, a token built on PAX Gold (PAXG) and designed to increase in value in gold terms through gold-leasing strategies. PAXG is backed by physical gold held in LBMA vaults and independently verified by KPMG. Users can obtain PAXGy by depositing PAXG or exchanging supported stablecoins, while the underlying gold reserves are lent to institutional borrowers. Returns are reflected in the exchange rate, allowing each PAXGy to become redeemable for more PAXG over time, although borrower defaults, liquidity constraints and losses in the underlying strategies could reduce its value. PAXGy is available through OKX Gold Earn and on X Layer, with trading supported on Uniswap, 0x and Ether.fi. Chainlink's CCIP technology allows users to move PAXGy between supported networks without closing their positions. Paxos Labs says tokenized gold has surpassed $5 billion in total value and that first-quarter 2026 trading volume exceeded the whole of 2025.