Paxos Labs has launched PAXGy, a token built on PAX Gold that is designed to grow in gold terms. PAXG represents allocated, LBMA-certified gold; PAXGy adds income from lending that gold out, which increases the amount of PAXG each PAXGy token can be redeemed for over time.

The return appears through a rising PAXGy-to-PAXG exchange rate rather than through additional tokens arriving in holders' wallets. Users can enter by depositing PAXG or stablecoins. The design means a holder's balance stays the same while the quantity of gold that balance represents is intended to increase.

At launch, PAXGy is available on OKX, its only centralized exchange listing, and on onchain venues including X Layer, 0x, Uniswap, and Ether.fi. Chainlink's Cross-Chain Interoperability Protocol is the exclusive messaging layer, so holders can move positions between networks without first converting back to PAXG.

Gold leasing has long been a business for banks and large institutions. PAXGy offers that yield to smaller holders in a transferable form, which adds a credit and counterparty dimension to what was previously a plain gold holding. How leasing terms and returns are disclosed will be the main point for investors to watch.