Coinbase’s fixed-rate Bitcoin loans can put healthy collateral at risk after maturity
Coinbase has launched fixed-rate USDC loans backed by Bitcoin using Morpho Midnight. Unlike Coinbase’s variable-rate loans, these loans have a set maturity date, and borrowers owe the full balance by that deadline; early repayment does not reduce interest. Unpaid debt becomes eligible for liquidation after maturity even if the collateral remains healthy, while a separate health-based trigger can cause liquidation earlier if collateral value falls or debt rises. Coinbase says it sends reminders seven days, three days and 24 hours before maturity. The offer is available to verified US customers outside New York, with limited UK access. Rates and borrowing limits vary, and borrowers cannot switch an existing loan between fixed and variable terms.
