Paxos Labs Unlocks Gold Lending Market with Tokenized Access
Gold owners have been locked out of the market for decades, despite a lending rate being quoted every working day. But now, Paxos Labs has launched PAXGy, a new token that gives holders exposure to the institutional gold leasing market. PAXGy is backed by pax gold (PAXG) and allows users to earn more notional ounces of gold over time.
The $530 billion of gold held in exchange-traded funds (ETFs) can charge investors annual fees of up to 40 basis points, while tokenized gold has grown beyond a $5 billion market cap. PAXGy is available on OKX, Uniswap, X Layer, 0x, and Ether.fi, with more venues expected to follow.
The economics of PAXGy depend on the institutional lending activity, not the gold itself producing income. The gold behind PAXGy is being put to work through institutional lending, making it a new way for almost anyone to tap into the market through blockchain and decentralized finance (DeFi).