Coinbase Launches Fixed-Rate Bitcoin Loans via Morpho Protocol
In brief
- Coinbase offers fixed-rate USDC loans secured by Bitcoin, locking in borrowing costs and repayment dates.
- Morpho Midnight powers the product, marking its first enterprise-scale deployment for fixed-rate lending.
- Fixed-rate loans complement Coinbase's existing variable-rate offering on Base.
The Product
Users can now lock in their borrowing rate and repayment date when tapping liquidity against Bitcoin holdings. This certainty contrasts sharply with variable-rate loans, where costs float with market conditions. Coinbase controls the user experience through its app, while Morpho provides the underlying credit infrastructure and Coinbase's Base network handles settlement.
The fixed-rate option sits alongside Coinbase's existing variable-rate loans, also powered by Morpho. Users can choose the structure that fits their strategy.
Scale and Expansion
Coinbase's Bitcoin-backed lending business on Base has grown substantially, now exceeding $1.4 billion in active loans backed by roughly $3 billion in collateral. The company first launched Bitcoin-backed borrowing on Base in early 2025, relying on Morpho as its technology provider.
Collateral options have expanded too. Beyond Bitcoin, Coinbase now accepts assets including XRP and Dogecoin.
Market Context
A sharp drop in Bitcoin and Ethereum prices in February drove record liquidations across Coinbase's loan book, underscoring the risks of variable-rate lending when volatility spikes. Fixed rates address that friction by removing price-swing uncertainty from the borrower's equation.
Morpho said the protocol is designed to eventually support tokenized stocks and other real-world assets. For now, the focus is on crypto collateral at scale.
