Coinbase Debuts Fixed-Rate Crypto-Backed Loans via Morpho Midnight

Coinbase has introduced fixed-rate crypto-backed loans via Morpho Midnight, expanding its lending product offerings. This new feature allows users to borrow USDC against Bitcoin with a fixed borrowing rate and repayment date from the outset.

The integration of Morpho's credit infrastructure within the Coinbase app marks a significant development in the company's on-chain lending capabilities. According to Coinbase, its existing variable-rate lending product has grown to over $1.4 billion in active loans backed by roughly $3 billion in collateral.

Morpho Midnight is a non-custodial protocol that enables fixed-rate and fixed-term credit, different from Morpho Blue which uses an interest rate model. Each market on Midnight has a defined maturity date, loan asset, and accepted collateral set, providing borrowers with clear repayment obligations and lenders with predictable returns.

The launch of this feature on Coinbase represents the first enterprise-scale integration of Morpho's Midnight protocol since its deployment in July. The company originally introduced Bitcoin-backed USDC loans using Morpho in January 2025.