Coinbase's new fixed-rate Bitcoin-backed USDC loans give borrowers a fixed interest rate and repayment date, but add a maturity-based liquidation risk that does not depend on Bitcoin's price. Morpho announced the offer on September 22, 2026, using Morpho Midnight, a fixed-rate lending protocol. Unlike Coinbase's variable-rate loans, the fixed-rate products have a set due date. If debt remains unpaid after maturity, a liquidator can repay the outstanding balance and claim collateral even when the loan-to-value ratio is still healthy. Health-based liquidation can also occur before maturity if collateral values fall or debt rises beyond the liquidation threshold. Coinbase sends reminders seven days, three days and 24 hours before maturity, but borrowers must repay the full balance by the deadline, and early repayment does not reduce interest owed. The product is available to verified U.S. customers outside New York and on a limited basis in the UK, with Bitcoin specified as collateral for the fixed-rate launch. Rates and borrowing limits vary by loan, and existing loans cannot be switched between fixed and variable rates.