Coinbase Opens USDC Loans Backed by Tokenized Gold

Coinbase has switched on borrowing against tokenized gold. Users can put up PAX Gold as collateral and pull USDC liquidity instantly, according to Cointelegraph — no need to sell the metal to raise cash.

The plumbing runs through Morpho, a decentralized lending protocol, and settles on Base, Coinbase's own Ethereum layer-2 network. That combination puts a TradFi-flavored asset — gold — into a fully onchain credit market.

PAX Gold is a tokenized claim on physical bullion, which makes it a natural pairing for stablecoin borrowing. Holders get dollar liquidity while keeping their gold exposure intact.

Coinbase hasn't said how much users can borrow, what rates apply, or which jurisdictions are eligible. Those details will decide how much real demand the product pulls.

Cointelegraph's post came with a knowing jab: Peter Schiff using DeFi when? Schiff, a longtime gold evangelist and crypto skeptic, is the obvious target of the joke. Gold bugs and stablecoin borrowers now share the same rails.

The move follows a broader push to tokenize real-world assets, with gold and treasuries leading the pack. If borrowing against bullion sticks, expect more collateral types to follow.