Paxos Labs Introduces Yield-Bearing Gold Token PAXGy

Paxos Labs has launched PAXGy, a gold-backed token designed to generate potential returns by lending underlying reserves to institutional borrowers in the bullion market. Unlike standard tokenized gold, PAXGy allows the redemption value in PAXG to grow over time as returns accrue. Paxos Labs warns that this model introduces credit, liquidity, and market risks, as returns are not guaranteed and the exchange rate may fluctuate. The token is now supported on platforms including OKX, X Layer, Uniswap, 0x, and Ether.Fi.