Coinbase Lets You Borrow Against Gold

PAX Gold is now accepted as collateral on Morpho via Base — the first non-crypto asset Coinbase Borrow has ever supported.

By The crypto-money Desk

Coinbase users in the U.S. can now post tokenized gold as collateral and borrow USDC — without selling the underlying asset. The integration, powered by Morpho on Base, marks Coinbase Borrow's first non-crypto collateral type. [1]

The product runs through Paxos' PAX Gold (PAXG). Coinbase added PAXG as a new collateral type on Morpho rather than building a separate lending product; Steakhouse curated the market. [1]

The Morpho integration behind Coinbase Borrow already holds about $3.4B in collateral and more than $1.7B in active loans, alongside existing support for BTC and ETH. Gold-backed loans are available across the U.S., except New York. [1]

The terms carry real friction worth noting. The Morpho market lists a 77% liquidation loan-to-value, and loan-health prices update only during gold-market hours — meaning positions could be exposed during off-hours volatility. [1]

Tokenized real-world assets have spent years as a concept in search of a distribution channel. Dropping gold-backed borrowing inside a mainstream consumer app is a different kind of proof-of-concept — one that sidesteps infrastructure debates and goes straight to the wallet.

Gold has always been a store of value. The question now is whether American retail holders will treat it as a credit line — and whether the liquidity mechanics hold when markets close and crypto doesn't. [1]

loan-health prices update only during gold-market hoursThe Defiant