Coinbase Unveils Fixed-Rate Bitcoin Loans Amid Growing Demand

Coinbase has launched a new fixed-rate loan product that lets customers borrow USDC against their Bitcoin at a fixed interest rate.

The move is part of Coinbase's expansion into crypto lending, which it believes will grow as demand for crypto-backed credit increases.

Unlike existing variable-rate loans, these new fixed-rate products have both the borrowing rate and repayment date determined when the loan is opened, through Morpho Midnight on Base, an Ethereum layer-2 network.

The opportunity could be massive, with a Bitcoin-backed credit market estimated at roughly $16 billion and potential growth as crypto collateral becomes more integrated with traditional credit markets.