Coinbase adds PAXG as USDC loan collateral; gold price feed pauses on weekends
In brief
- Paxos launched gold-backed PAXG on Base on Nov. 6, adding it alongside Ethereum and Solana.
- Morpho says Coinbase users can borrow USDC against PAXG; Paxos said Borrow was coming in 'weeks ahead.'
- PAXG collateral prices on Coinbase stop updating when gold markets close, including weekends.
- PAXG-specific borrowing caps and rates aren't published on Coinbase's public Borrow page.
- Eligibility covers Canada, the US outside New York and limited UK access; PAXG is unavailable in the EU.
What launched, and who says it's live
According to Paxos's product site, each full PAXG token represents one fine troy ounce of physical gold held in custody, and holders can own fractions of a token. The Base launch takes PAXG beyond Ethereum and Solana onto the Coinbase-incubated layer-2.
The plumbing isn't new. Coinbase's Morpho-backed Bitcoin loans on Base were announced in January 2025, so the lending rails came before gold did.
Timing is a little muddy. Paxos's announcement listed Coinbase Borrow among integrations expected in the "weeks ahead" (subject to product availability), while Morpho's announcement the same day described borrowing as live. For holders, the pitch (as CryptoSlate framed it) is raising stablecoin liquidity against gold exposure without selling the token for cash.
The weekend gap
Coinbase says PAXG collateral prices update during gold-market hours, about 23 hours on weekdays, according to loan guidance reported by CryptoSlate. They stop updating while gold markets are closed, and that includes weekends.
That's a loan-health issue, not a trading one. The pause applies to the prices Coinbase uses to track collateral (it affects how quickly loan health reflects gold prices), and it doesn't describe all PAXG trading.
So what does a borrower actually get?
Eligibility, caps and liquidation
Under its general eligibility rules, Coinbase's loan introduction lists verified customers in Canada and in the US outside New York, plus limited UK access. Paxos says PAXG is unavailable to European Union residents. Collateral choices can also differ between fixed-rate and variable-rate loans, so each customer's PAXG access depends on what's offered to them.
Coinbase says borrowing limits vary by asset and are shown in the product. Its public Borrow page doesn't specify PAXG caps or rates, even though it advertises limits for other collateral. Liquidation thresholds vary by asset too, and they appear on the loan overview or management page.
The mechanics are standard defi lending. A falling collateral value or accruing interest can push the loan-to-value ratio up, and hitting the applicable threshold can trigger automatic liquidation. Coinbase's optional collateral top-up protection can reduce that risk, but the company warns that collateral can still be liquidated with protection turned on.
Frequently asked questions
Why does the PAXG collateral price pause on weekends at Coinbase?
Coinbase says PAXG collateral prices update during gold-market hours, about 23 hours on weekdays, and stop updating while gold markets are closed, including weekends. The pause applies to the prices used to track loan health, not to all PAXG trading.
Who can borrow USDC against PAXG on Coinbase?
Coinbase's loan introduction lists verified customers in Canada and the US outside New York, plus limited UK access, under its general eligibility rules. Paxos says PAXG is unavailable to EU residents, and collateral options can differ between fixed- and variable-rate loans.
What are the borrowing limits and liquidation thresholds for PAXG loans?
Coinbase hasn't published PAXG-specific caps or rates on its public Borrow page. It says limits vary by asset and are shown in the product, while liquidation thresholds vary by collateral and appear on the loan overview or management page.
