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Can Marlowe contracts involve native assets? For example if I want to issue a bond denominated in USDC

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Yes.

Marlowe is essentially a layer over top of Plutus Core and so it can access and/or manipulate anything that Plutus Core based Smart Contracts can access including native assets/tokens. Marlowe is more restrictive than Plutus but only in terms of computation to allow for easier/automated static analysis.

https://docs.cardano.org/en/latest/marlowe/marlowe-lang-guide.html

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    Just as an added point, native tokens are first class citizens on Cardano, so anything you can do with ADA you should be able to do with native tokens.
    – mal
    May 28 at 14:07
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    While this is true, the only limitation currently is that you cannot pay tx fees with native assets yet. That will be possible some time in the future with Babel fees but not at the moment.
    – lambda
    May 29 at 10:40

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