Coinbase Unveils Fixed-Rate USDC Loans Backed by Bitcoin via Morpho Midnight
Coinbase has introduced fixed-rate USDC loans backed by Bitcoin through Morpho Midnight, a decentralized lending protocol. The new product allows users to borrow the stablecoin against their Bitcoin with an interest rate and repayment date set at origination.
Morpho Midnight is built on Coinbase's Ethereum layer 2 network Base, where transactions are settled. This fixed-rate offering runs alongside Coinbase's floating-rate lending through Morpho Blue, which has more than $1.4 billion in active loans backed by nearly $3 billion in collateral.
Coinbase's new product is positioned as an alternative to its existing variable-rate borrowing options. According to a company spokesperson, borrowers must repay before maturity, with the 'End of Month' date referring to the last Friday of the selected month.