News
Public · Published
Gold's 50-Year Money-Making Trick Just Went Onchain
Gold lending rates have been quoted every working day for 50 years, but most gold owners have been locked out of this market. Paxos Labs launched PAXGy on Sept. 24, wrapping institutional gold-leasing economics into a token backed by PAXG.
Published:
Updated:
What happened
Gold lending rates have been quoted every working day for 50 years, but most gold owners have been locked out of this market. Paxos Labs launched PAXGy on Sept. 24, wrapping institutional gold-leasing economics into a token backed by PAXG.
Confirmed
Global impact / market context
Gold owners normally earn nothing while their metal sits idle. A token tied to PAXG could let them share in gold lending rates, which means the fees institutions pay to borrow gold, potentially turning a dead asset into one that produces income.
Analyst inference
Gold lending has long been an institutional-only business, so ordinary owners could not access those rates. Putting this onchain could widen who can earn from lending gold, linking physical gold markets with crypto tokens that represent real-world assets.
Analyst inference
What to watch
- Paxos Labs launched PAXGy on Sept. 24, wrapping institutional gold-leasing economics into a token backed by pax gold, known as PAXG, according to the article. Confirmed
- The reserves behind the token are deployed to institutional parties, so watch whether those deployments actually generate lending income for token holders as proposed. Proposed
- Watch whether gold owners move metal into token form, since wider participation could change how lending rates are set and who earns the fees institutions pay to borrow gold. Analyst inference
Affected assets
- GOLD — GOLD
- RWA — Xend Finance
- PAXG — PAX Gold