Paxos Labs and Theo bet tokenized commodities can do more than sit there

For most of its short life, tokenized gold has done one job: track the price of gold. Paxos Labs and Theo want it to earn its keep. Both firms are pushing yield-bearing commodity tokens into a market that research puts at more than $5 billion. From shiny rock to income stream Paxos Labs launched PAXGy on September 24, 2026. The token is backed by PAXG, the firm’s existing tokenized gold product, and taps institutional gold leasing to build up additional gold reserves over time. Theo got there earlier. The firm introduced thGOLD in January 2026, a product that yields approximately 2% from gold lending. Theo then widened its scope in September 2026. It rolled out tokenized silver backed by $40 million in active leases, extending the lending model it had already applied to gold. The numbers behind the push Tokenized gold trading volume hit $90.7 billion in Q1 2026. That single quarter exceeded the total for all of 2025. As of October 2026, more than 450,000 wallets hold tokenized commodities, a figure that has climbed year over year. Tokenized gold remains the dominant force in the space. PAXG and XAUT lead the segment, and the sector’s overall value has passed the $5 billion mark, wi...