Coinbase Unveils Fixed-Rate Bitcoin Loans with Locked-In Interest Rates

Coinbase has expanded its lending options to include fixed-rate loans powered by Morpho. These new loans allow users to borrow USDC against their Bitcoin holdings, with both the interest rate and repayment date locked in from the start.

This marks a departure from the variable-rate model that dominates on-chain lending, where borrowing costs can fluctuate unpredictably. The fixed-rate option is now available alongside Coinbase's existing variable-rate loans, which have grown to over $1.4 billion in active loans backed by roughly $3 billion in collateral.

The new feature uses Morpho Midnight, a newer version of the protocol designed to support fixed rates and defined maturities. Coinbase controls the user experience through its app, while Morpho provides the underlying credit infrastructure and Coinbase's Base network handles settlement.