Coinbase now allows eligible U.S. users, excluding New York residents, to borrow USDC against PAX Gold (PAXG), a tokenized gold asset issued by Paxos, without selling their holdings. Available through the regular Coinbase app, the feature is implemented via Morpho Labs on the Base blockchain. Loan-health price updates occur only during traditional gold-market hours, aligning the DeFi lending mechanism with established precious-metals trading schedules. The loans carry variable rates and no fixed repayment schedule, while borrowers face liquidation if PAXG falls too far in value relative to their debt. Users also assume exposure to Morpho’s smart contracts and liquidity conditions. Coinbase said the launch is the first time Coinbase Borrow has accepted collateral that is not a crypto asset and expands its real-world asset offerings. Coinbase and Morpho began working together in January 2025 on Bitcoin-backed USDC loans, later expanding to Ethereum, XRP and Solana. The Morpho-powered system has supported approximately $3.4 billion in collateral and more than $1.7 billion in active crypto-backed loans. Coinbase provides the interface and user base, while Morpho supplies lending liquidity and market infrastructure, connecting digital-asset liquidity with commodity-backed tokens.