Coinbase launches fixed-rate Morpho loans as Bitcoin-backed lending expands

  • Coinbase launched fixed-rate Bitcoin-backed USDC loans through Morpho Midnight, with Base handling settlement.
  • $1.4 billion in active loans were backed by approximately $3 billion in collateral.
  • Coinbase began offering variable-rate Morpho loans on Base in early 2025 and later added XRP and Dogecoin collateral.

Coinbase launched fixed-rate Bitcoin-backed USDC loans through decentralized lending protocol Morpho, allowing borrowers to lock the interest rate and repayment date when a loan begins. The product is the first enterprise-scale deployment of Morpho Midnight, with Coinbase managing the app experience, Morpho supplying the credit infrastructure and Base handling settlement. It complements Coinbase’s existing variable-rate Morpho loans, which have more than $1.4 billion in active loans backed by about $3 billion in collateral. Coinbase first introduced Bitcoin-backed borrowing on Base in early 2025 and later expanded eligible collateral to assets including XRP and Dogecoin. Earlier reports put Coinbase-linked Morpho collateral at $3.5 billion and later approximately $3.62 billion, while another account reported $1.57 billion in loans across roughly 53,000 active users. Coinbase’s lending book has also experienced record liquidations after a sharp February decline in Bitcoin and Ethereum prices. Morpho said the infrastructure is designed to eventually support tokenized stocks and other real-world assets.

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Coinbase launches fixed-rate Morpho loans as Bitcoin-backed lending expands - CoinPost Terminal