Coinbase offers gold-backed loans powered by Morpho

Eligible US users can now borrow USDC against Paxos tokenized gold, the first non-crypto collateral accepted by Coinbase Borrow Coinbase now lets users borrow USDC stablecoins against PAX Gold (PAXG), a tokenized gold asset issued by Paxos. The loans run through the Morpho protocol on the Base blockchain. This is the first time Coinbase Borrow has accepted collateral that isn’t a crypto asset. How the PAXG loans work The feature was announced on November 6, 2026, and lives inside the regular Coinbase app. Users holding PAXG can pledge it and receive USDC in return, without selling their gold position. Behind the scenes, the loans tap a newly created USDC|PAXG market on Morpho Blue. Morpho supplies the lending liquidity, while Coinbase supplies the front end and the user base. The terms look different from a typical bank loan. There is no fixed repayment schedule, and rates are variable, set by the Morpho Blue market rather than by Coinbase. Instead of monthly due dates, the loans rely on loan-to-value (LTV) liquidation mechanics. If the value of the PAXG backing a loan falls too far relative to the debt, the position can be liquidated. Availability is limited to eligible US users, ...