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

Coinbase has launched fixed-rate USDC loans backed by Bitcoin, expanding its existing variable-rate loan book. The new product, powered by Morpho Midnight, allows eligible users to choose between a fixed-term and open-ended borrowing option.

The fixed-rate structure sets both the interest rate and repayment date at origination, unlike variable-rate borrowing which does not lock the rate for the loan's full life. Borrowers can select a fixed term and borrow up to $5 million, with USDC as the borrowed asset and Bitcoin as collateral.

Morpho described the launch as fixed-rate crypto-backed lending powered by its Midnight protocol, while Coinbase's loan setup documentation confirms the product choices and borrowing ceiling. The addition changes the range of term structures available rather than replacing the earlier model.