Coinbase Enables USDC Borrowing Against Tokenized Gold PAXG

Tokenized gold moving into the collateral stack is a meaningful step for RWA markets: PAXG is now doing the job bullion has long done in traditional finance — securing a loan without a sale — but through DeFi rails and a USDC stablecoin. The design, routed through Morpho and Base, shows lending infrastructure increasingly plugging real-world assets into onchain credit. The geographic carve-out for New York and the Canada inclusion hint at a regulatory patchwork still shaping access. Worth watching: whether other tokenized commodities follow PAXG into collateral roles, and whether this lending model draws the compliance scrutiny that has kept some jurisdictions on the sidelines.