Coinbase Introduces Fixed-Rate USDC Loans Backed by cbBTC
Coinbase has expanded its lending services by introducing fixed-rate USDC loans backed by cbBTC, providing customers with an alternative to variable-rate borrowing.
The new feature operates through Morpho Midnight, a fixed-rate and fixed-term lending protocol on Base. Customers pledge cbBTC as collateral and receive USDC without selling their bitcoin exposure. Coinbase manages the customer interface, while Morpho supplies the lending protocol and Base processes the transactions.
Unlike variable-rate loans through Morpho Blue, fixed-rate loans set the interest rate and maturity when borrowers accept an onchain offer. Borrowers must repay before maturity, or lenders can claim the cbBTC securing the loan. Each Midnight loan establishes an interest rate and repayment date when the transaction begins.