Coinbase Enables USDC Loans Backed by Tokenized Gold Through Morpho on Base
Key Facts
Morpho announced on November 6, 2026, that Coinbase users can borrow stablecoins against tokenized gold issued by Paxos without leaving the Coinbase app. The move adds PAX Gold to the collateral available for borrowing USDC through Coinbase Borrow. Borrowing takes place through a new market pairing USDC and PAXG on the Morpho Blue protocol on Base. Morpho said gold had become “the first non-crypto asset on Coinbase Borrow.” The expansion gives tokenized-gold holders a way to borrow against the token through Coinbase’s interface and an on-chain lending infrastructure.
Coinbase says the Morpho protocol on Base enables the borrowing, while the platform provides the access interface. Its official help page lists PAX Gold among the assets eligible as collateral for USDC loans, alongside a range of other digital assets. But the published loan terms do not follow a single structure: variable-rate loans have no set term and can be repaid in part or in full at any time, while fixed-rate loans have a maturity date and must be repaid in full when it arrives. Coinbase’s page does not specify terms for PAXG loans, so it is not possible to determine which structure applies to this particular market. Coinbase also limits eligibility to verified customers residing in the United States, excluding New York, with limited availability in the United Kingdom or Canada; eligibility may vary by region.
The addition of gold follows an earlier expansion of lending through Morpho. The company says Coinbase launched crypto-backed loans through the protocol in January 2025, allowing users to borrow USDC against Bitcoin through the app. On September 16, 2026, Morpho said Coinbase’s variable-rate loans had exceeded $1.4 billion, backed by about $3 billion in collateral. At the announcement of the gold market, Morpho described the integration as comprising about $3.4 billion in collateral and more than $1.7 billion in active loans. Morpho’s case study page provides more detailed figures through November 6, 2026: $3.39 billion in collateral, $3.49 billion in total borrowing, 58.9 thousand borrowers, and about $1.76 billion in active loans. These figures cover the broader Coinbase-Morpho integration and do not represent borrowing against PAXG alone.
The gold’s eligibility is based on the PAXG token. Paxos says each unit represents one fine troy ounce of gold held in London vaults accredited by the London Bullion Market Association, while Paxos Trust Company holds the underlying gold in custody. According to an estimate Morpho published with its announcement, the gold category is worth about $30 trillion, while tokenized gold on-chain amounts to about $5 billion. The company said a smaller share of this tokenized gold is currently used as collateral in on-chain lending and described the gold-backed loan market as developing. The launch places the new USDC/PAXG market within efforts to expand the use of tokens linked to real-world assets in credit available through financial apps. Coinbase lists asset-price volatility, protocol-level security vulnerabilities and liquidity issues among the risks of collateral-backed loans.
In equity markets, Coinbase shares closed at $136.82 on November 5, 2026, down from $151.50 in the previous session, according to EL7 daily closing data. Gold prices also posted a monthly decline in October, with the World Gold Council reporting a dollar return of negative 6.3% through October 30. The council had recorded a record gold price of $5,405 an ounce on January 29, 2026. These figures provide context for the movement of the asset represented by PAXG, but do not on their own determine the value of eligible collateral or the liquidation terms of any particular loan. The announcement data did not include separate figures for the volume of loans issued in the new USDC/PAXG market.