Paxos Labs and Theo are introducing yield-bearing commodity tokens to transform idle assets into productive capital. The sector for tokenized commodities is currently valued at over $5 billion, with some estimates reaching $6 billion.
Paxos Labs launched PAXGy on September 24, 2026. This token is backed by the existing PAXG product and utilizes institutional gold leasing to generate reserves. Theo introduced its thGOLD product in January 2026, which offers a yield of approximately 2% through gold lending.
In September 2026, Theo expanded its portfolio by launching tokenized silver, supported by $40 million in active leases. The firm applies the same lending model to silver that it previously established for its gold products.
Market data indicates that tokenized gold trading volume reached $90.7 billion in Q1 2026, surpassing the total volume for the entire year of 2025. As of October 2026, more than 450,000 wallets hold tokenized commodities.
Paxos Labs estimates that approximately $530 billion in gold is currently held in traditional ETFs that do not provide yield. These new tokens aim to integrate commodity holdings into DeFi protocols, allowing them to serve as collateral while earning lease income.
