Tokenized Gold Now Serves as Loan Collateral on Coinbase

The Morpho protocol has launched USDC lending using the PAXG token as collateral. The asset, which represents one troy ounce of physical gold, was integrated into the Base network on November 6.

This feature allows users to obtain stablecoin liquidity without needing to sell their gold holdings. The service is available directly through the Coinbase app.

The collateral pricing system has significant operational limitations. PAXG value updates follow the operating hours of traditional gold markets.

During weekends and periods when the metals market is closed, collateral prices do not change on the platform. Loan liquidity remains subject to eligibility criteria and liquidation limits defined by the protocol.

This integration expands the use of real-world assets within decentralized finance infrastructure. The initiative follows the expansion of Bitcoin-backed lending previously started by the platform.