Coinbase users can now borrow USDC against bitcoin at a fixed rate
Coinbase has launched a fixed-rate, bitcoin-backed loan product for USDC, allowing users to borrow against their crypto assets with predictable repayment terms. The service operates on the Morpho Midnight protocol and utilizes Coinbase's Base layer 2 network.
Why it matters
This development represents a significant step in integrating decentralized finance (DeFi) tools into mainstream consumer applications, potentially increasing the utility of bitcoin as collateral.
The exchange has rolled out fixed-rate, bitcoin-backed USDC loans, with the interest rate and repayment date set at the time of borrowing, an alternative to the floating-rate loans Coinbase already offers.
“The move takes onchain borrowing beyond the predominantly variable-rate model, giving users greater certainty over the cost and duration of their borrowing,” according to an announcement on Tuesday.
The fixed-rate offering runs on Morpho Midnight, a decentralized, non-custodial lending protocol for fixed-rate and fixed-term crypto loans launched in July this year. It settles transactions on Coinbase’s Ethereum layer 2 network Base.
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