Paxos Labs Introduces PAXGy: A Token That Grows in Value Relative to Gold

Paxos Labs has introduced PAXGy, a gold-backed token designed to increase in value relative to gold. The token is built on PAX Gold ($PAXG), a digital asset backed by physical gold held in LBMA vaults and independently verified by KPMG.

Users can obtain PAXGy by depositing $PAXG or exchanging supported stablecoins. As the gold reserves are lent to institutional borrowers, the exchange rate increases, allowing each PAXGy to represent more $PAXG over time. Holders can redeem their tokens for $PAXG at any time.

Paxos Labs is a provider of digital asset infrastructure for businesses. The product is available through OKX Gold Earn and on X Layer, with trading also supported on Uniswap, 0x, and Ether.fi. Chainlink provides cross-chain messaging through its CCIP technology, allowing users to move PAXGy between supported networks without first closing their positions.