Coinbase Introduces Fixed-Rate Lending for USDC Against BTC Collateral

Coinbase has introduced a new lending product that allows users to borrow USDC against Bitcoin collateral. The fixed-rate, fixed-term loan is integrated with Morpho's Midnight protocol and operates on the Base Network.

The new service differs from Coinbase's existing variable-rate lending by offering defined interest rates and repayment dates at the time of origination. This feature has been uncommon in on-chain lending markets until now.

Coinbase is currently offering two loan products with maturities at the end of this month or next month, allowing users to lock in interest rates and repayment schedules in advance. Repayment before maturity is the standard arrangement, and lenders gain claims on collateral assets in case of non-repayment.