Paxos Labs has launched PAXGy, a token backed by PAXG that can increase in value relative to gold over time.
\nThe underlying reserves are deployed to vetted institutional borrowers through the gold-leasing market.
\nPAXGy is live across platforms including OKX, X Layer, Uniswap, 0x and Ether.Fi, but the return is not guaranteed.<\/p>\n
**ID:** N25-09<\/p>\n
**Site:** NewsBTC<\/p>\n
**Status:** READY<\/p>\n
**Author:** NewsBTC Editorial Team<\/p>\n
**Focus Keyword:** Paxos<\/p>\n
**Image Keyword:** Gold<\/p>\n
**Category:** Altcoins<\/p>\n
**Tags:** Paxos, PAXG, PAXGy, Gold, Tokenization<\/a><\/p>\n **Primary Source:** https:\/\/www.paxos.com\/blog<\/p>\n PAXGy is backed by PAXG.<\/p>\n Each PAXG represents physical gold held in institutional custody<\/a>, with the underlying reserves subject to regular attestation.<\/p>\n PAXGy adds another layer.<\/p>\n Paxos Labs says holders can deposit PAXG or swap supported stablecoins<\/a> for PAXGy.<\/p>\n The reserves backing PAXGy can then be lent to vetted institutional borrowers in the bullion market.<\/p>\n When those strategies generate a return, that value accrues through the PAXGy exchange<\/a> rate.<\/p>\n The holder\u2019s number of tokens does not have to increase.<\/p>\n Instead, each PAXGy can become redeemable for more PAXG over time.<\/p>\n That is a very different model from simply holding tokenized bullion.<\/p>\n There is no free yield here.<\/p>\nThe Token Balance Stays The Same While Its Gold Value Can Grow<\/h2>\n
Yield Also Introduces Risk That Plain Gold Does Not Have<\/h2>\n