Eligible US users can borrow USDC against Paxos tokenized gold (PAXG) on Base – Coinbase Borrow’s first non-crypto collateral.
Coinbase said Eligible users can now borrow USDC against PAX Gold (PAXG) in its app, powered by Morpho on Base.
What’s the scoop?
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The product: Holders unlock USDC without selling the gold. Coinbase added PAXG as a new type of collateral on Morpho rather than creating a separate loan product; Steakhouse organized the market.
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The scale: Coinbase Borrow already takes cryptocurrencies like BTC and ETH as collateral. Morpho says the Coinbase connection already holds around $3.4 billion in collateral and over $1.7 billion in active loans. Coinbase said Gold loans are available in the United States except New York.
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The Conditions: The Morpho Marketplace lists a liquidation loan-to-value ratio of 77%, and The Defiant called that health loan prices are only updated during gold market opening hours. If you are looking for fixed rate BTC loans, check out our article on Morpho Midnight.
David Christophe
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David is a writer/analyst at Bankless. Before joining Bankless, he worked for a series of early-stage crypto startups and with grants from the Ethereum, Solana and Urbit foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
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