Paxos' gold-backed PAXG token is live on Base and set to become the first non-crypto collateral in Coinbase Borrow, the Morpho-powered lending product.
Key Facts
Paxos' PAX Gold token is now live on Base, the layer-2 network incubated by Coinbase, and is available across DeFi venues there, Paxos said.
PAXG is set to become the first non-crypto collateral asset in Coinbase Borrow, an onchain lending product powered by Morpho, with the rollout expected in the weeks ahead, subject to product availability, Paxos said.
Each PAXG token is backed by one fine troy ounce of physical gold held in LBMA-accredited vaults, according to Paxos.
PAX Gold (PAXG), the gold-backed token issued by Paxos, is now live on Base, the layer-2 network incubated by Coinbase, Paxos said on Friday.
PAXG is already available across DeFi venues on Base and is set to become the first non-crypto collateral asset in Coinbase Borrow, an onchain lending product powered by Morpho, according to a Paxos blog post dated Nov. 6. Coinbase Borrow and other integrations are expected to roll out in the weeks ahead, subject to product availability.
"PAXG will be the first non-crypto collateral in Coinbase Borrow, sitting alongside assets like BTC and ETH as something you can borrow against with just a few clicks," Antonio Garcia-Martinez, head of growth at Base, said in the announcement.
PAXG is live on Base and set to become collateral in Coinbase Borrow. Source: CoinMarketCap
Borrowing Against Gold
Coinbase Borrow lets users borrow against their assets instead of selling them. Paxos said PAXG holders could keep their gold position while unlocking liquidity against it, as people already do with crypto holdings such as Bitcoin (BTC) and Ethereum (ETH).
"Until now getting cash out of gold meant giving it up," Garcia-Martinez said.
Borrowing without selling has been growing on Morpho. Bitcoin pledged in Morpho's main Base market was backing a record $1.6 billion in stablecoin loans as of Oct. 20, and Ledger rolled out Morpho-powered loans against wrapped Bitcoin the same month.
How PAXG Is Backed
PAXG, a gold-backed cryptocurrency, is backed by one fine troy ounce per token of physical gold held in LBMA-accredited vaults, verified through monthly KPMG attestations and an annual audit from Bureau Veritas, according to Paxos. The company issues PAXG through its national trust bank, which is regulated by the US Office of the Comptroller of the Currency.
Holders can redeem PAXG for physical gold bars, with a minimum of 430 PAXG, or for unallocated gold or cash at market price, Paxos said. PAXG is also available on Ethereum and Solana, Paxos said.
PAXG traded at $4,088.90, up 0.9% over 24 hours, according to CoinMarketCap data.
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