Key facts
- Coinbase now offers fixed-rate USDC loans collateralized by cbBTC.
- The new loan product runs through Morpho Midnight on the Base network.
- Borrowers can negotiate interest rates and repayment terms with lenders.
- Coinbase also offers variable-rate borrowing through the Morpho Blue platform.
- Morpho Midnight currently holds approximately $30 million in deposits.
Coinbase has expanded its borrowing services by introducing fixed-rate USDC loans collateralized by cbBTC, a wrapped bitcoin token. This new offering, available through Morpho Midnight on the Base blockchain, allows users to secure loans with defined interest rates and maturity dates, providing an alternative to the exchange's existing variable-rate borrowing options on Morpho Blue. Borrowers can negotiate terms directly with lenders via an on-chain order book. Failure to repay the USDC loan by its maturity date can result in the forfeiture of the cbBTC collateral. Morpho Midnight, which launched on Base in July, currently holds around $30 million in deposits, while the broader Morpho Blue platform has approximately $5.2 billion in outstanding loans across all its integrations. Coinbase is responsible for the customer experience, Morpho for the protocol, and Base for transaction processing.