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Paxos Gold (PAXG) Now Live on Aave V4 as Borrowing Collateral for USDG



Paxos Gold (PAXG) is now live on Aave V4's Global Dollar Hub, allowing users to use their gold-backed token holdings as collateral to borrow USDG on the Ethereum network. The integration, announced on September 10, 2026, enables decentralized finance users to leverage gold-backed assets within the Aave ecosystem, creating a new liquidity option on the platform. Governance discussions for the integration began in August, with risk assessment firm LlamaRisk supporting the onboarding of PAXG to the Aave V4 Global Dollar Hub as a collateral-only reserve within the new Gold Spoke, at a 75% loan-to-value ratio. To avoid additional governance proposals, Aave also proposed enabling native USDG as a borrowable reserve on the Pendle Spoke with a 4,000,000 USDG draw cap. This integration is significant because it bridges the gap between traditional safe-haven assets like gold and the decentralized lending ecosystem. Users can now unlock liquidity from their PAXG holdings without selling their gold exposure, effectively allowing them to borrow against their gold in a capital-efficient manner. The move reflects the growing maturity of DeFi platforms and their increasing willingness to incorporate real-world assets (RWAs) as collateral. PAXG, issued by Paxos, represents physical gold held in secure vaults, with each token backed by one fine troy ounce of London Good Delivery gold. Following the announcement, AAVE declined 5.74% and ETH fell 1.88%, reflecting broader market weakness rather than a negative reaction to the integration.
#AppleSeptemberEvent
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PAXGPAXG-1.62%
USDGUSDG0.00%
AAVEAAVE-4.62%
ETHETH-1.17%
PENDLEPENDLE-2.01%


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DigitalNoah
12 minutes ago
What the hell is #AppleSeptemberEvent? Did the poster copy and paste it and forget to delete the hashtag?
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TransparentDomeCity
14 minutes ago
Finally, you can borrow stablecoins against gold—the pace at which RWA is entering DeFi is faster than I expected.
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EulerEuler
32 minutes ago
Combining the traditional gold standard with on-chain leverage, this path is opening up more and more possibilities.
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PhishDetector
35 minutes ago
First Review
LlamaRisk-backed + a 4M cap, with fairly conservative risk controls, suitable for testing the waters
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