Coinbase Expands Lending Services to Include PAX Gold Collateral
Coinbase has launched a new lending feature allowing customers to borrow USDC against their holdings of PAX Gold (PAXG), marking the company's first expansion into commodity-backed lending. The service, built on Coinbase's Base blockchain and powered by the Morpho protocol, enables users to access liquidity without selling their gold positions. This move extends a crypto-lending suite that previously included assets like Bitcoin and Ether. The feature is currently available in the United States, excluding New York. While the loans offer flexibility with no fixed repayment schedules, they carry risks associated with variable interest rates and potential liquidation if the value of the pledged gold drops below required collateral buffers. This expansion follows significant growth in Coinbase's onchain lending business, which surpassed $1 billion in originations by October 2025.
Topics: Blockchain Crypto Lending Gold-backed Tokens Stablecoins