Coinbase Users Can Now Borrow Against Their Gold Holdings via Morpho

Coinbase has integrated USDC loans backed by PAX Gold (PAXG), the physical gold token issued by Paxos. The feature operates natively within its application, leveraging the smart contracts and decentralized markets of the Morpho Blue protocol deployed on the Base Layer-2 network.

Gold in a vault. Liquidity in your account.

You can now instantly borrow USDC against PAX Gold (PAXG) on Coinbase. Tokenized gold, backed by the real thing.

From crypto to commodities like gold, get instant liquidity without selling.

Powered by @morpho, built on @base. pic.twitter.com/S9scgSpb4g

— Coinbase 🛡 (@coinbase) November 6, 2026

This marks the first time the platform’s lending service supports collateral from the real-world asset (RWA) sector, expanding a partnership with Morpho that already manages billions in loans collateralized with Bitcoin and other cryptocurrencies. By using PAXG, investors can unlock dollar liquidity without having to sell their positions in the precious metal or forfeit their market exposure.

Eligible users in the United States already have access to the service, with variable interest rates algorithmically determined by the on-chain market. This rollout is expected to accelerate the adoption of traditional financial collateral within the regulated DeFi ecosystem.

Source: https://x.com/coinbase/status/2118727681886105975

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