22 September 2026
Coinbase Introduces Fixed-Rate Bitcoin Loans for US Users, Enhancing Borrowing Predictability
Coinbase has unveiled a significant update for Bitcoin holders, launching a fixed-rate loan product that enables U.S. users outside New York to borrow USDC against their Bitcoin holdings. This innovative service, powered by Morpho Midnight, allows borrowers to secure their interest rates and repayment dates upfront.
Previously, Coinbase offered Bitcoin-backed loans with floating interest rates and no set repayment dates, which could lead to uncertainty for borrowers. With the introduction of Morpho Midnight, customers can now enjoy a more predictable borrowing experience, locking in terms before accessing funds.
Merlin Egalite, co-founder of Morpho, emphasized that this marks Coinbase's first fixed-rate loan product, allowing users to borrow against their Bitcoin while maintaining ownership. The process involves converting Bitcoin into cbBTC, a tokenized version, which serves as collateral for the loan.
According to Morpho's data, the platform currently supports approximately $1.56 billion in outstanding loans linked to Coinbase, with around 53,000 active borrowers. This new product aims to simplify the borrowing process, making it more akin to traditional banking practices.
While the fixed rates provide clarity, borrowers should remain aware of the risks associated with Bitcoin's price volatility. If the value of Bitcoin declines significantly, it could trigger liquidation of collateral, despite the fixed loan terms.
Overall, Coinbase's latest offering is designed to enhance the borrowing experience for cryptocurrency users, providing a familiar structure within the evolving landscape of onchain lending.
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