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.
Coinbase said eligible users can now borrow USDC against PAX Gold (PAXG) inside its app, powered by Morpho on Base.
What's the Scoop?
The Product: Holders unlock USDC without selling the gold. Coinbase added PAXG as a new collateral type on Morpho rather than building a separate lending product; Steakhouse curated the market.
The Scale: Coinbase Borrow already takes crypto like BTC and ETH as collateral. Morpho says that Coinbase hookup already holds about $3.4B in collateral and more than $1.7B in active loans. Coinbase said the gold loans are available in the U.S. except New York.
The Terms: The Morpho market lists a 77% liquidation loan-to-value, and The Defiant called out that loan-health prices update only during gold-market hours. If you’re looking for fixed-rate BTC loans, checkl out our piece on Morpho Midnight.
David Christopher
David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
