Coinbase has resumed offering Bitcoin-backed loans, leveraging the Morpho lending protocol on its Ethereum layer-2 network, Base. This marks the exchange’s return to crypto-backed lending nearly two years after discontinuing its Borrow service in 2023.
The loans, collateralized at 133% of their value, allow customers to borrow up to $100,000 in USDC stablecoin instantly through Coinbase’s centralized exchange. Interest rates will be dynamically calculated by Morpho based on market conditions, and borrowers can maintain flexible repayment schedules as long as their loan-to-value ratio remains healthy.
Coinbase initially launched Bitcoin-backed loans in November 2021 but ceased operations in May 2023 amid regulatory uncertainty and a broader crypto market downturn. The relaunch aligns with Bitcoin’s recent surge to an all-time high of over $108,000, buoyed by pro-crypto sentiment following Donald Trump’s presidential election win.
The renewed Bitcoin-backed lending service is currently available across the U.S., excluding New York, with plans to expand to other regions and introduce additional crypto-collateralized lending options in the future.
This move underscores Coinbase’s efforts to capitalize on the renewed bullish momentum in the crypto market and to provide innovative financial products via its Base network.