CONNECT WITH US
Fintech

Fintech

Coinbase Taps Morpho to Offer Gold-Backed USDC Loans

Fintech News Singapore logo

Published on

Add as a preferred source on Google
Coinbase Taps Morpho to Offer Gold-Backed USDC Loans

Coinbase has added tokenised gold as collateral for its crypto-backed loans. PAX Gold (PAXG) is the first non-crypto asset that Coinbase Borrow accepts, alongside bitcoin, ether, XRP and solana.

Coinbase users can borrow stablecoins against their tokenised gold without leaving the Coinbase app. The offering introduces a USDC/PAXG market on Morpho, which operates on Base, the blockchain network.

The market allows users to pledge PAXG, a tokenised gold asset issued by Paxos, as collateral to borrow USDC.

The new market extends Coinbase’s existing lending integration with Morpho without requiring Coinbase to rebuild its infrastructure or establish a new lending market.

According to Morpho, the integration currently holds roughly US$3.4 billion in collateral and more than US$1.7 billion in active loans.

Coinbase Borrow already accepts crypto-native assets such as BTC, ETH, XRP and SOL as collateral.

Morpho said the integration allows Coinbase to introduce new financing options without rebuilding its lending infrastructure or sourcing liquidity from scratch.

The company also makes the same approach available to other tokenised asset issuers and platforms building on its network.

Morpho estimates that gold represents a roughly US$30 trillion asset class, but only about US$5 billion worth has been tokenised onchain. Even fewer tokenised gold assets currently serve as collateral in onchain lending.

The company said tokenised assets could gain greater utility and demand when users can pledge them as collateral for stablecoin loans.

Featured image credit: Edited by Fintech News Singapore, based on image by Morpho



Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.