The new Pigments 5 has the ability to be used as an effect. Though not in the traditional sense. After experimenting in Cakewalk I found out how use it as an effect for an Audio track and for an Instrument track.
For Audio Effect:
As you can see I added Pigments as an Effect. But when you go to insert an effect make sure you choose "Inert Soft Synth" then choose Pigments. There should be a MIDI track for Pigments too and make sure it's Output is set to it as well, as you can see