Borrow Against Your Bitcoin at a Patched Rate: Coinbase Scales up Morpho Loans
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Coinbase is giving borrowers a new way to tap cash without selling their Bitcoin, rolling out fixed-rate loans powered by decentralized lending protocol Morpho.
Key facts
- That business has grown substantially, now exceeding $1.4 billion in active loans backed by roughly $3 billion in collateral, according to Morpho
- Coinbase is giving borrowers a new way to tap cash without selling their Bitcoin, rolling out fixed-rate loans powered by decentralized lending protocol Morpho
- That marks a departure from the variable-rate model that has dominated on-chain lending, where borrowing costs float with market conditions and can climb unpredictably
- The launch is the first enterprise-scale deployment of Morpho Midnight, a newer version of the protocol built to support fixed rates and defined maturities, with loans priced and executed natively
Summary
Coinbase launched fixed-rate loans powered by Morpho, letting users borrow USDC against Bitcoin with the interest rate and repayment date locked in from the start—a departure from on-chain lending's dominant variable-rate model. It's the first enterprise-scale deployment of Morpho Midnight, with Coinbase controlling the app experience, Morpho providing the credit infrastructure and Base handling settlement. The option joins Coinbase's existing Morpho-powered variable-rate loans, now over $1.4 billion in active loans backed by ~$3 billion in collateral. The product, announced Tuesday, lets Coinbase users borrow the USDC stablecoin against their Bitcoin with the interest rate and repayment date locked in from the start.