Coinbase now enables users to borrow USDC against tokenized gold (PAXG) via the Morpho protocol on Base, marking a significant expansion of its lending services into real-world assets.
Starting November 6, 2026, PAXG holders can borrow USDC against their tokens on Coinbase without selling, adding a liquidity use case that did not exist before on the exchange. Each PAXG token is backed by one fine troy ounce of gold in vaults. New utility and broader access can support demand for the token, though the benefit is confined to eligible users outside New York and Canada.
Holders can now access instant USDC liquidity on Coinbase without selling their gold-backed tokens, which adds demand and utility for PAXG.
No, it is available to eligible users in the United States except New York and in Canada it is excluded, with terms and rates varying by user.
Coinbase expanded its Borrow feature on November 6, 2026 to accept tokenized PAX Gold as collateral for USDC loans, its first non-crypto commodity collateral. This broadens its lending market, which already supports $3.4 billion in collateral and over $1.7 billion in active loans. It is a product expansion without disclosed revenue figures, so the price effect is likely modest and gradual rather than a sharp move.
It is a routine product expansion of the Borrow feature with no revenue or user figures disclosed, so any positive effect on the stock is likely limited.
It is the first time Coinbase accepts a non-crypto commodity as collateral: users can borrow USDC against tokenized gold (PAXG) via Morpho on Base.
Coinbase has expanded its Borrow feature to accept PAX Gold (PAXG) as collateral for USDC loans, marking the exchange's first move into non-crypto commodity-backed lending. The service, powered by the Morpho protocol on the Base blockchain, allows eligible users to access liquidity without selling their gold holdings. This integration bridges traditional real-world assets with onchain lending infrastructure.
Users can now access instant USDC liquidity by using their PAX Gold tokens as collateral, allowing them to leverage their gold holdings without having to sell the underlying asset.
Yes, borrowers are subject to variable interest rates and potential liquidation if the value of their PAXG collateral falls below required loan-to-value thresholds.