Paxos Launches PAXG on Solana, Expands Tokenized Gold Access
Paxos Trust Company has launched its tokenized gold product, PAX Gold (PAXG), on the Solana blockchain as part of a broader multi-chain expansion strategy. PAXG, which represents one fine troy ounce of physical gold stored in LBMA-approved vaults, is now accessible to Solana's growing DeFi ecosystem. This move aims to capitalize on Solana’s low transaction fees and sub-second settlement times, enhancing PAXG’s appeal to both individual and institutional investors.
The timing aligns with Solana’s recent growth as a hub for real-world assets (RWA). In May 2026, Solana's RWA total value locked (TVL) surged to $2.5 billion, up from $215 million a year earlier, according to RWA.xyz. The blockchain's near-perfect uptime and transaction costs averaging fractions of a cent make it a compelling choice for integrating regulated digital assets like PAXG.
Why PAXG on Solana Matters
Tokenized gold has gained traction as a modern alternative to traditional gold investment vehicles like ETFs. Since its launch in 2019, PAXG has grown significantly, with a 300% increase in demand since 2024. Each PAXG token is fully backed by physical gold, with monthly attestations by KPMG and on-chain verification tools ensuring transparency. Unlike gold ETFs, PAXG holders pay no custody fees and enjoy near-instant settlement for transactions.
The addition of Solana extends PAXG’s reach into a blockchain ecosystem known for high-speed, low-cost transactions. Solana’s active DeFi market—supported by platforms like Sunrise DeFi—offers PAXG holders new opportunities for yield-generating strategies, including staking and liquidity provision. For institutional players, the token’s regulatory compliance and physical backing add credibility amidst rising interest in tokenized assets.
Infrastructure Upgrades for Multi-Chain Expansion
Expanding PAXG to Solana required both contract upgrades and new token implementations. Paxos updated its Ethereum-based PAXG contracts to support omnichain functionality, ensuring compliance and auditability across multiple blockchains. The Solana deployment uses the Token-2022 standard, which allows for native compliance controls, mirroring the rigor of its Ethereum counterpart.
Existing Ethereum PAXG holders can bridge their tokens to Solana via the Paxos platform or LayerZero Stargate, avoiding the need for re-custodying or new attestations. This seamless bridging mechanism lowers barriers for users looking to engage with Solana’s DeFi markets.
Broader Market Implications
The launch comes amid increasing institutional interest in tokenized gold. As of March 2026, the tokenized gold market approached $6 billion in capitalization, driven by products like PAXG. Its direct correlation to gold prices (0.99 daily return correlation) makes it a reliable proxy for physical bullion, appealing to investors seeking exposure without the operational complexities of owning gold directly.
Solana’s broader adoption of real-world assets could further amplify PAXG’s utility. With lending markets on the blockchain reaching $3.6 billion by late 2025 and sustained improvements in network reliability, Solana offers a fertile ground for integrating tokenized commodities.
What’s Next?
Paxos has positioned the Solana launch as the first step in a larger multi-chain strategy. The infrastructure built for this expansion is designed to scale across additional blockchains, potentially bringing PAXG to ecosystems like Polygon or Avalanche. For now, the focus remains on leveraging Solana’s DeFi capabilities to drive adoption and liquidity.
As the gold market experiences its strongest bull cycle in two decades, the combination of physical backing, regulatory oversight, and blockchain efficiency positions PAXG as a compelling investment tool. With Solana now in the mix, Paxos appears poised to capture a broader audience in the evolving tokenized asset space.