Paxos Labs Introduces PAXGy with Lending Yield Feature

Paxos Labs has launched PAXGy, a new feature that adds lending yield to its tokenized gold product. This move aims to provide investors with an alternative way to earn returns on their PAXG holdings.

Holders of PAXG will bear the risk of borrower defaults, which means they may not receive their principal back in full if the borrower is unable to repay a loan. On the other hand, direct redemptions allow holders to redeem their PAXG for US dollars through an approval-gated withdrawal queue.