TLDR
Coinbase now lets eligible US users borrow USDC against Paxos’ PAX Gold (PAXG) token.
PAXG is the first non-crypto asset accepted by Coinbase Borrow.
The loans run on a new USDC and PAXG market on Morpho, built on Base.
The Coinbase and Morpho integration holds about $3.4 billion in collateral and over $1.7 billion in active loans.
Morpho says only about $5 billion of the roughly $30 trillion gold market is tokenized.
Coinbase users in the United States can now borrow USDC stablecoins using tokenized gold as collateral. The new option lets eligible customers pledge PAX Gold, a token issued by Paxos, directly inside the Coinbase app.
The feature marks the first time Coinbase Borrow has accepted an asset that is not a cryptocurrency. Until now, the service only took crypto-native assets such as bitcoin, ether, XRP and solana.
The loans run on Morpho, an onchain lending network that already powers Coinbase Borrow. Morpho announced the new gold market on November 6, 2026.
The launch extends a lending partnership that has already handled billions of dollars in loans. Only eligible users in the United States can access the gold option.
How the Gold Loans Work
The offering uses a new USDC and PAXG market on Morpho. That market runs on Base, the blockchain network built by Coinbase, and sits next to the existing crypto markets that support Coinbase Borrow.
Users pledge their PAXG tokens as collateral and receive USDC in return. PAXG is a tokenized gold asset, which means it represents gold in digital form on a blockchain.
Customers do not need to leave the Coinbase app to take out a loan. The process happens within the same Borrow feature that already handles crypto-backed loans.
Morpho said it is one of the largest sources of USDC liquidity onchain. The company said this gives Coinbase users access to competitive borrowing rates against gold.
Coinbase did not need to rebuild its lending systems to add the new option. It also did not have to build a fresh pool of funds from scratch, according to Morpho.
Gold can now back a USDC loan on Coinbase.
PAX Gold (PAXG) added as collateral Powered by Morpho on Base Eligible US users, excluding New York; liquidation risk
Would you borrow against gold rather than sell it?#Crypto #RWA pic.twitter.com/PF5JAFv6vi
— Hashim N. (@hashi1888) November 6, 2026
Instead, the gold market plugs into the existing integration between the two companies. That setup currently holds about $3.4 billion in collateral, based on data cited by Morpho.
Active loans through the integration have passed $1.7 billion. Morpho described it as one of the largest crypto-backed loan partnerships between a consumer platform and an open credit network.
A Small Slice of a Large Gold Market
Morpho estimates that gold is a roughly $30 trillion asset class worldwide. Only about $5 billion of that total has been tokenized onchain so far.
An even smaller share of tokenized gold is used as collateral in onchain lending today. Morpho said gold-backed loans are still a developing market, similar to loans backed by tokenized stocks.
The company said tokenization is only the first step for asset issuers. It said tokenized assets become more useful when people can pledge them to unlock stablecoin loans.
In Morpho’s view, that borrowing ability is what sets tokens apart from their offchain versions. The company said this can lead to greater demand for the tokens.
Morpho said the same lending approach is open to other tokenized asset issuers. Platforms building on its network can use the setup to add new types of collateral.
For now, PAXG joins bitcoin, ether, XRP and solana on the list of assets accepted by Coinbase Borrow. It is the only non-crypto asset on that list.
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