Coinbase now allows eligible US users, except New York residents, to borrow USDC stablecoins against PAX Gold (PAXG), a tokenized asset issued by Paxos. The loans are offered through the Morpho protocol on the Base blockchain within the Coinbase app, with Morpho Blue providing the lending liquidity. Unlike traditional bank loans, the interest rate is variable, there is no fixed monthly repayment schedule, and liquidation depends on the loan-to-value ratio between the collateral and the debt. This is the first non-crypto collateral accepted by Coinbase Borrow, which already supports Bitcoin, Ethereum, XRP and Solana. Morpho’s existing Coinbase integration manages approximately $3.4 billion in collateral and more than $1.7 billion in active crypto-backed loans, while PAXG gains a new use case for tokenized gold within a major US crypto platform.
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