Coinbase Launches Fixed-Rate Loans Powered by Morpho
Coinbase has introduced fixed-rate loans for its users, allowing them to borrow USDC stablecoin against their Bitcoin at a locked-in interest rate and repayment date. This move marks a departure from the variable-rate model that has dominated on-chain lending in the past.
The new product, powered by decentralized lending protocol Morpho, provides certainty over both the cost and duration of loans. Coinbase controls the user experience through its app, while Morpho handles the underlying credit infrastructure and settlement through Coinbase's Base network.
This is a significant development for on-chain lending, which has largely relied on variable rates until now. The fixed-rate option sits alongside Coinbase's existing variable-rate loans, which are also powered by Morpho.