Paxos launched its gold-backed PAXG token on Base, and Coinbase now lists it as eligible collateral for USDC loans. Coinbase says PAXG collateral prices stop updating while gold markets are closed, including weekends.
Paxos launched PAXG on Base on Nov. 6, extending the gold-backed token beyond Ethereum and Solana. Coinbase now lists the asset as eligible collateral for borrowing the USDC stablecoin.
Borrowing against gold without selling the token
Each full PAXG token represents one fine troy ounce of physical gold held in custody, according to Paxos's product site. Holders can own fractions of a token.
Morpho said Coinbase users can borrow against PAXG through a new market on Base without leaving the exchange's app. That gives holders a route to raise stablecoin liquidity rather than selling the token.
However, the timing is not settled. Paxos's announcement described Coinbase Borrow among integrations expected in the "weeks ahead", subject to product availability, while Morpho's same-day announcement described borrowing as live.
Collateral prices pause when gold markets close
Coinbase says PAXG collateral prices update during gold-market hours, approximately 23 hours on weekdays. The prices do not update while gold markets are closed, including weekends.
Rising loan-to-value ratios can lead to automatic liquidation of collateral, Coinbase warns. A falling collateral value or accumulating interest can raise the ratio, and liquidation thresholds vary by collateral asset.
Coinbase's optional collateral top-up protection can reduce that risk, but the company warns that collateral can still be liquidated when protection is enabled.
Access and limits vary
Coinbase's loan introduction lists verified customers in Canada and the US outside New York, alongside limited UK access. Paxos separately says PAXG is currently unavailable to European Union residents.
Borrowing limits vary by asset, and PAXG-specific borrowing caps and rates remain unspecified on Coinbase's public Borrow page.
Sources: CryptoSlate, Paxos, Morpho, Coinbase Help
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