Coinbase Introduces Fixed-Rate Bitcoin-Backed Loans via Morpho Midnight

Coinbase has added fixed-rate bitcoin-backed loans through Morpho Midnight. This new option allows users to borrow USDC with an interest rate and repayment date set when they take out the loan.

The fixed-rate loans sit alongside Coinbase's existing variable-rate loans, which use Morpho Blue. Those loans have grown to more than $1.4 billion outstanding, backed by roughly $3 billion in collateral, according to Coinbase.

Coinbase is the first major consumer platform to offer loans through Midnight at scale, a Morpho spokesperson told The Block. Market makers also use the protocol, and Tenor Labs launched a lending platform using Midnight in July, the spokesperson said.