Coinbase has officially launched a feature that allows eligible users to borrow USDC against PAX Gold (PAXG), the tokenized physical gold asset issued by Paxos. The announcement was made on November 6, 2026, and marks the first time Coinbase’s lending service has accepted collateral from the real-world asset (RWA) sector.
The feature operates natively within the Coinbase application, leveraging the smart contracts and decentralized markets of the Morpho Blue protocol deployed on the Base Layer-2 network. In a social post, Coinbase described the product with the tagline: “Gold in a vault. Liquidity in your account.” Users can now instantly borrow USDC against PAXG without selling their gold holdings, preserving exposure to the precious metal while unlocking cash flow.
Eligible users in the United States already have access, with variable interest rates determined algorithmically by on-chain market conditions. The rollout expands Coinbase’s existing partnership with Morpho, which already manages billions of dollars in loans collateralized with Bitcoin and other cryptocurrencies.
Key highlights include instant USDC borrowing against PAXG, no requirement to sell gold positions, and a system powered by Morpho on Base. The move could accelerate adoption of tokenized real-world assets and hybrid financial products that bridge traditional commodities with crypto liquidity.
