Borrow Against Your Bitcoin at a Fixed Rate: Coinbase Expands Morpho Loans
Coinbase is launching fixed-rate loans that let users borrow USDC against Bitcoin without selling their BTC. The new product locks in both the interest rate and repayment date at origination, offering more certainty than the variable-rate lending common in crypto markets. It is powered by Morpho Midnight, a newer version of Morpho built for fixed rates and defined maturities, with Coinbase handling the app experience and Base handling settlement. The fixed-rate loans join Coinbase’s existing variable-rate Bitcoin-backed borrowing, which also uses Morpho. Coinbase’s lending business has grown to more than $1.4 billion in active loans backed by about $3 billion in collateral. The expansion follows earlier moves to lower costs and accept additional collateral like XRP and Dogecoin, though the platform has also faced sharp liquidations during crypto price drops.
