Coinbase lets US users borrow USDC against tokenised gold PAXG through Morpho

Coinbase has added PAX Gold (PAXG), a tokenised gold asset issued by Paxos, as collateral for USDC loans in Coinbase Borrow. It is the first non-crypto collateral the product accepts. Eligible US users, excluding New York residents, can pledge PAXG and receive USDC without selling their gold.

The loans run through Morpho on Base, in a newly created USDC/PAXG market on Morpho Blue. Morpho supplies the lending liquidity and Coinbase supplies the front end and user base. Interest rates are variable and set by the market rather than by Coinbase.

Coinbase and Morpho first partnered in January 2025 on Bitcoin-backed USDC loans. That integration has supported about $3.4 billion in collateral and carries more than $1.7 billion in active loans against crypto assets. No volumes were given for the PAXG market.

The read: tokenised real-world assets are being used as loan collateral inside a mainstream retail app.