Paxos Labs Taps Chainlink for PAXGy Token Launch

Paxos Labs launched its new gold-backed token PAXGy on September 24, which is designed to grow in value through institutional gold leasing. Unlike its sister token PAXG, which tracks the price of physical gold, PAXGy is backed by PAXG and can be redeemed for it.

Paxos Labs utilized Chainlink's Cross-Chain Interoperability Protocol (CCIP) as the exclusive cross-chain messaging infrastructure for PAXGy. Additionally, Chainlink Price Feeds provided onchain pricing data to support DeFi adoption for the token.

CCIP enables the movement of gold-backed tokens across supported chains without requiring holders to unwind their positions first. This is particularly important for PAXGy, as it allows investors to participate in the growth of gold-leasing returns without needing to sell their assets on the market.