Paxos Labs debuts PAXGy gold token across OKX and DeFi platforms

Paxos Labs has introduced PAXGy, a gold-backed token designed to accrue value in ounces of gold by deploying its underlying reserves in the institutional gold leasing market. PAXGy is built on PAX Gold (PAXG), which Paxos Labs says is fully backed by investment-grade gold stored in LBMA vaults and independently attested by KPMG. Users can deposit PAXG or swap supported stablecoins for PAXGy, whose value accrues through an exchange rate denominated in gold terms. At launch, OKX is the only centralized exchange listing PAXGy, while the token is also available across X Layer, 0x, Uniswap and Ether.Fi. Chainlink’s CCIP provides cross-chain messaging, allowing PAXGy positions to move between networks without being unwound. The gold backing PAXGy is deployed to vetted institutional borrowers through the long-established bullion leasing market. Borrowers including refiners, jewelry manufacturers, miners and bullion banks use leased gold rather than purchasing the metal outright. Paxos Labs said returns from these deployments increase the amount of PAXG represented by each PAXGy over time, enabling holders to earn a return measured in gold rather than dollars. The launch comes as tokenized...