Kamino has launched the $PAXG Market, introducing gold-backed credit to its lending platform on Solana. Curated by Steakhouse Financial, the new market allows users to supply Pax Gold ($PAXG) as collateral and borrow $USDG, giving tokenized gold holders a way to access liquidity without selling their assets.
Users can buy $PAXG, deposit it into Kamino, and borrow $USDG against their holdings at 1.9% APY. The launch makes tokenized gold usable as onchain collateral through a dedicated lending market.
How the $PAXG Market Works
Pax Gold is a digital asset backed by physical gold, with each $PAXG token representing 1 fine troy ounce of a London Good Delivery gold bar stored in LBMA vaults. Holders own the underlying gold through Paxos Trust Company, an OCC-regulated custodian that conducts monthly audits of its allocated reserves.
Kamino designed the $PAXG Market as a fully isolated lending market with its own risk parameters and oracle infrastructure. Chainlink powers price feeds for the market, helping determine collateral values and borrowing limits independently from other assets on the platform.
OnRe Continues Rapid Growth
The launch comes as Kamino's RWA markets continue to expand. The OnRe Market surpassed $200 million in total market size last week and now stands at over $206 million.
The market has grown nearly 70% over the past 90 days, making it the 2nd-largest RWA market on Kamino and the 4th-largest market overall.
Current OnRe metrics include a total supply of $206.1 million, $127 million of $ONyc used as collateral, $69.7 million borrowed against collateral, 24% growth over the past 30 days, and 66% growth over the past 90 days.
The market has expanded from roughly $50 million in February to more than $200 million today.
Ethena Remains One of Kamino's Largest Markets
Kamino's Ethena Market has also maintained strong momentum since its launch. On May 14, Kamino reported that the market became the fastest in the platform's history to exceed $400 million in size. Within its first 24 hours, it reached a $200 million borrow cap, attracted more than $225 million in $USDe deposits, and deployed more than $420 million overall.
Today, 75 days after its May 13 launch, the Ethena Market has grown to $522.8 million, making it one of Kamino's largest lending markets.
RWA Lending Evolves on Solana
According to Blockworks' Solana Q2 Tokenholder Report, deposits across Solana's 2 largest money markets, Kamino and Jupiter Lend, reached $4.1 billion at the end of the quarter, while outstanding loans totaled $1.6 billion.
The addition of new lending markets tied to tokenized assets continues to broaden the range of collateral available on Solana as interest in real-world assets grows.
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