Coinbase Unveils Fixed-Rate USDC Loans Backed by Bitcoin for Borrowers

Coinbase has launched a new service allowing customers to borrow USDC stablecoins against their Bitcoin holdings. The fixed-rate loans are powered by Morpho Midnight on the Base blockchain and provide borrowers with more control over their credit without having to sell their crypto assets.

The new offering complements Coinbase's existing variable-rate borrowing service, Morpho Blue, which has outstanding loans of over $5.2 billion backed by approximately $16 billion in collateral. The fixed-rate service allows borrowers and lenders to agree on interest rates and repayment periods upfront, providing certainty over borrowing costs.

Coinbase Yield and Investments Product Lead Jacob Frantz noted that fixed-rate borrowing gives customers greater flexibility in managing credit while accessing liquidity without selling their crypto assets. Current loan terms mature either at the end of the ongoing month or the following month.