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Coinbase to Offer Ethereum-Backed Loans of Up to $1 Million in the U.S.

According to Coinbase, eligible U.S. customers can now borrow up to $1 million USDC against Ethereum holdings, gaining liquidity while maintaining ETH exposure.

ETH
USDC
MORPHO

Summary

Coinbase has officially launched an Ethereum-backed loan program for eligible U.S. customers, enabling borrowing of up to $1 million in USD Coin without selling ETH holdings. The program leverages Coinbase’s Base layer-2 network and the Morpho protocol for decentralized lending, with Coinbase serving as the primary user interface. This service aims to provide liquidity solutions for customers who wish to retain their Ethereum exposure while accessing funds.

Terms & Concepts
  • Ethereum-backed loan: A loan secured by pledged Ethereum holdings, allowing borrowers to access cash without selling their cryptocurrency.
  • Base: A layer-2 network built on Ethereum, developed by Coinbase, designed to offer faster and cheaper blockchain transactions.
  • Morpho protocol: A decentralized lending protocol that optimizes borrow and lend rates by connecting lenders and borrowers more efficiently.