Paxos gold yield product runs on a 61-ounce backing

Paxos Labs launched PAXGy on Sept. 24, adding a lending yield strategy to its PAX Gold token. The product’s dashboard reported 61.63 fine ounces of total gold backing that day, a figure the company’s transparency page attributes to its own reporting.

The backing is split: 20% sits in a liquid PAXG reserve to meet redemptions, while 80% is deployed in gold leasing. Holders keep a constant PAXGy balance, but the amount of PAXG redeemable per token is intended to grow over time as leasing income accrues. The launch disclosure notes that losses or borrower defaults can push the exchange rate downward, leaving holders with less PAXG.

CoinGecko recorded roughly 434,899 PAXG in circulation and a $1.85 billion market capitalization on Sept. 24, according to The Defiant’s coverage of the launch. Tether Gold’s market value was about $2.66 billion that same evening. Direct minting and redemption for PAXGy are limited to institutional counterparties, with withdrawals processed through a gated queue rather than instant transfers.

PAX Gold’s historical range, spanning from a $1,399.64 low to a $5,619.09 high, sets the backdrop for the current market depth that CoinGecko data, cited in a May report, shows reached $90.7 billion in first-quarter 2026 spot volume, exceeding the $84.64 billion recorded throughout 2025. While the product terms acknowledge that collateral requirements reduce, but do not eliminate, default risk, the underlying asset’s stability is reinforced by the fact that freezing is something that Paxos will not do on its own accord, and as such we expect to happen extremely rarely, according to paxosglobal/paxos-gold-contract.