Coinbase Unveils Fixed-Rate USDC Loans Backed by Bitcoin

Coinbase has launched a new fixed-rate loan product for US users, allowing them to borrow dollars without selling their Bitcoin holdings.

The loans are denominated in USDC and backed by BTC, providing a fixed-term borrowing option alongside Coinbase's existing variable-rate offering.

The interest rate and repayment date are set when each loan begins, giving borrowers a clear understanding of their financial obligations. If the principal and interest are not repaid by the deadline, the pledged Bitcoin may be taken.

This expansion of Coinbase's crypto-backed borrowing products comes as its existing Morpho-supported Bitcoin-backed loans continue to grow in popularity, with over $1.4 billion active or unpaid loans now backed by approximately $3 billion in collateral.