Paxos Labs Launches PAXGy, Adding Lending Yield to Tokenized Gold

The notable design choice is that yield is sourced from lending rather than from the metal itself, which means PAXGy holders are effectively underwriting credit risk to earn a return on an otherwise inert asset. That reframes tokenized gold from a pure store-of-value into a yield-bearing instrument with a risk profile closer to a lending pool, a meaningful shift for holders who treat PAXG as collateral or a defensive allocation. The approval-gated redemption queue is the structural detail worth watching: whether that gating stays a formality or becomes a constraint on liquidity in stressed conditions is the open question.