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Coinbase launches gold-backed USDC loans powered by Morpho

Coinbase has enabled borrowing USDC against Paxos tokenized gold on the Base network, marking the first time its lending service has accepted non-crypto collateral.

Diagram illustrating how Paxos PAXG asset collateral flows into Morpho lending on Base to enable USDC borrowing on Coinbase Borrow.
Image: @DegenerateNews

Coinbase users can now borrow USDC against Paxos-issued PAX Gold (PAXG) without selling their holdings, using an in-app lending service powered by the Morpho protocol on Base. The rollout introduces gold-backed collateral into Coinbase Borrow, making PAXG the first tokenized real-world asset accepted on the platform alongside standard crypto assets such as Bitcoin and Ethereum.[1][2][3][5][7][8]

Each PAXG token deployed on Base is backed by one fine troy ounce of physical gold stored in vaults, according to The Block. The gold-backed loan feature is open to eligible customers across the United States, excluding New York, and operates with a 77% liquidation loan-to-value threshold.[3][4][7][8]

Morpho reported that its integration with Coinbase already accounts for roughly $3.4 billion in collateral and more than $1.7 billion in active loans, according to Bankless.[3]

Key facts

  • Coinbase enabled borrowing USDC against Paxos-issued PAX Gold (PAXG) inside its app.
  • The loans are powered by the Morpho protocol on the Base network.
  • PAXG represents the first non-crypto and real-world asset collateral accepted by Coinbase Borrow.
  • The lending product is available to U.S. users excluding New York.
  • Each PAXG token on Base is backed by one fine troy ounce of physical gold held in vaults.
  • The service carries a 77% liquidation loan-to-value threshold.
  • Morpho reported that the Coinbase connection holds approximately $3.4 billion in collateral and over $1.7 billion in loans.

Sources · 8 sources

  1. DE

    Decrypt@DecryptMediaPost on X ·

    Coinbase Adds USDC Borrowing Against Tokenized Gold. Coinbase users can now borrow USDC against Paxos-issued PAX Gold through a Morpho lending market on Base, bringing gold-backed collateral into the exchange’s existing in-app borrowing service. https://t.co/flNDpPyj9E

    Open source
  2. CO

    Cointelegraph@CointelegraphPost on X ·

    🔥 NEW: Coinbase now lets you borrow $USDC against tokenized gold. Put up PAX Gold, get instant liquidity without selling, all running on Morpho and Base. Peter Schiff using DeFi when? https://t.co/VLdCn8QsLK

    Open source
  3. BA

    Bankless@BanklessPost on X ·

    NEWS: $COIN lets users borrow USDC against Paxos tokenized gold (PAXG) via Morpho on Base — Borrow's first non-crypto collateral. Available in the U.S. except New York. Morpho says the Coinbase hookup already holds ~$3.4B collateral and $1.7B+ in loans. https://t.co/ZrAAYuSOwr

    Open source
  4. DN

    DEGEN NEWS@DegenerateNewsPost on X ·

    NEW: @Morpho SAYS GOLD-BACKED LOANS ARE ON @coinbase FOR U.S. USERS EXCEPT NEW YORK USERS CAN BORROW STABLECOIN LIQUIDITY AGAINST TOKENIZED GOLD BY @Paxos ON @base, WITHOUT LEAVING THE COINBASE APP https://t.co/FQJf5C3AjN

    Open source
  5. BA

    BanklessArticle ·

    Coinbase Enables Borrowing Against Gold via Morpho Eligible U.S. users can borrow USDC against Paxos' tokenized gold (PAXG) on Base — Coinbase Borrow's first non-crypto collateral.

    Open source
  6. CN

    crypto.news@cryptodotnewsPost on X ·

    JUST IN: Coinbase has introduced borrowing USDC against tokenized gold Users can now use PAX Gold ($PAXG) as collateral to access liquidity without selling their gold, with the lending service powered by Morpho on Base. https://t.co/FTW1YVY5Lq

    Open source
  7. TB

    The Block@TheBlockCoPost on X ·

    THE BLOCK: Coinbase is adding loans backed by tokenized gold, letting users borrow USDC against Paxos' $PAXG token through Morpho without selling their tokens. PAXG has launched on Base, with each token backed by one fine troy ounce of physical gold held in vaults. https://t.co/XtjbfDIGjP

    Open source
  8. TM

    That Martini Guy ₿@MartiniGuyYTPost on X ·

    Coinbase now allows US users to borrow USDC against Gold The new service allows eligible customers to use PAX Gold as collateral to access USDC This marks the first time Coinbase Borrow has accepted a tokenised real-world asset as collateral, expanding beyond crypto, such as Bitcoin and Ethereum The service is available across the US, excluding New York, with a 77% liquidation loan-to-value threshold

    Open source