Kamino Finance KMNO$0.031-4.6% added physical gold to its accepted collateral on July 27, opening the PAXG Market on Solana's largest lending protocol by total value locked. The market, announced by Kamino that afternoon, lets users supply PAX Gold (PAXG) as collateral and borrow USDG against it, with Steakhouse Financial as curator.
How the PAXG Market Works on Kamino
The market is fully isolated, running with its own risk parameters distinct from Kamino's main SOL/BTC market and other curated markets. Chainlink provides the gold price oracle. Kamino's team described the opening borrow rate at 1% APY.
Steakhouse Financial, a DeFi infrastructure provider that curates lending vaults focused on the stablecoin economy, is the market's curator. It added PAXG as collateral exposure for its USDG High Yield vault strategy. "We've onboarded PAXG as collateral exposure for the Steakhouse USDG High Yield vault, via the new PAXG/USDG market on @kamino," the firm announced the same day.
PAX Gold (PAXG): Paxos's OCC-Regulated Gold Token on Solana
PAXG is issued by Paxos USDP$0.992-58.7% Trust Company. Each token represents one fine troy ounce of a London Good Delivery gold bar held in London Bullion Market Association vaults in London. Paxos holds the gold in allocated custody, regulated by the U.S. Office of the Comptroller of the Currency, and audits the backing monthly.
PAXG arrived on Solana mainnet on June 25, 2026 via the Sunrise bridge protocol, the first OCC-regulated gold token in the Solana ecosystem. Its listing on Kamino is its first use as DeFi lending collateral on the network.
USDG: Paxos-Backed Stablecoin With $620M Circulating Supply
The market's borrowable stablecoin is USDG, issued by Global Dollar Network USDG$1.000+0.0% and custodied by Paxos Trust Company. As of July 27, USDG had a circulating supply of 619.96 million tokens, per Solana Compass data, held across 17,672 wallets. That makes the PAXG Market an arrangement between two Paxos-custodied products: Paxos-issued gold on the supply side and a Paxos-custodied dollar stablecoin on the borrow side.
Gold Joins Equities and Reinsurance in Kamino's Collateral Mix
The PAXG Market is the latest addition to Kamino's pattern of curated, isolated markets for assets outside the SOL ecosystem. The protocol's OnRe reinsurance yield market passed $200 million in market size by July 26. Earlier that week, tokenized equity collateral across Kamino's markets had reached more than $53 million from xStocks products and Superstate tokenized funds.
Gold sits in a distinct asset category from those. Tokenized equity collateral tracks stock indices; gold's price moves on different macroeconomic signals. The PAXG Market is accessible at kamino.com/borrow.
