Coinbase has introduced a new lending feature allowing users to borrow USDC against tokenized gold (PAXG) as collateral without selling their holdings. The integration was implemented via Morpho Labs on the Base network. According to Coinbase, loan-health price updates occur only during traditional gold-market hours, aligning the crypto lending mechanism with established precious metals trading schedules. This development expands DeFi collateral options while bridging digital asset liquidity with commodity-backed tokens.