Crypto-backed loans on Coinbase now extend to commodities: users can instantly borrow USDC against PAX Gold (PAXG), the gold-backed token where each unit is tied to physical gold held in a vault.

The lending runs on Morpho, the onchain lending protocol, and is built on Base, Coinbase's Ethereum layer 2. Users post PAXG as collateral and receive USDC without selling their gold exposure.

The move brings a real-world asset into Coinbase's borrowing product next to crypto collateral, giving tokenized gold holders a way to unlock liquidity directly inside a major exchange app.