Coinbase Launches Fixed-Rate Loans for USDC Borrowing Against Bitcoin

Coinbase has introduced fixed-rate loans for its users to borrow USDC against their Bitcoin holdings. This move takes on-chain borrowing beyond the variable-rate model, providing users with greater certainty over the cost and duration of their borrowing.

The new feature is powered by Morpho Midnight, a decentralized lending protocol for fixed-rate and fixed-term crypto loans launched in July this year. It settles transactions on Coinbase's Ethereum layer 2 network Base.

Coinbase's existing floating-rate loans, which have over $1.4 billion in active loans backed by nearly $3 billion of collateral, will now sit alongside the new fixed-rate option. This marks a significant shift from how Coinbase's lending has worked until now.