Coinbase Launches Fixed-Rate USDC Loans Backed by Bitcoin
The loans set interest rates and repayment dates at origination, while unpaid balances may result in the collateral being taken.
Coinbase launched fixed-rate, fixed-term loans denominated in USDC and secured by Bitcoin (BTC), giving US users access to dollar-pegged borrowing without selling their holdings.
The product runs through Morpho Midnight. Its interest rate and repayment date are set when each loan begins, providing fixed terms for the borrower. If the USDC principal and interest are not repaid by the deadline, the pledged Bitcoin may be taken.
Coinbase’s existing Morpho-supported Bitcoin-backed loans carry variable interest rates. Those active or unpaid loans now exceed $1.4 billion, backed by about $3 billion in collateral.
The launch expands Coinbase’s crypto-backed borrowing products while adding a fixed-term option alongside its existing variable-rate offering.
