# Banks Tokenize Deposits as Coinbase Offers Morpho-Powered Borrowing By John Kim Canonical URL: https://www.tokenpost.com/news/business/34025 Published: 2026-10-17T13:23:47.000Z Updated: 2026-10-17T13:23:47.000Z Section: Business > Coinbase’s service had more than $2.17 billion in cumulative USD Coin (USDC) originations by April 14, 2026; active USDC loans exceeded $1.4 billion by Sept. 16. J.P. Morgan, BNY and Citi are building blockchain tools for deposit records and cash movement, while Coinbase’s Morpho-powered service lets eligible U.S. customers borrow against crypto, extending onchain finance into bank operations and customer borrowing. Cumulative USD Coin (USDC) originations through Coinbase on Morpho exceeded $2.17 billion by April 14, 2026. More than $1.4 billion in USDC loans tied to the service were active on Morpho as of Sept. 16. Originations count loans issued over time; active loans measure borrowing still outstanding, so the figures cover different measures and dates. Launched in January 2025, Coinbase’s U.S. service allows verified customers outside New York to borrow USDC against eligible crypto collateral through Morpho on Base. Collateral remains held in Morpho until the loan is repaid. The broader [Morpho-backed borrowing service]() includes variable-rate loans backed by Bitcoin. JPM Coin (JPMD) became available to institutional clients on Base on Nov. 12, 2025, for near-instant settlement around the clock. The deposit token is designed for institutional use. BNY’s capability, announced Jan. 9, 2026, creates blockchain entries representing participating clients’ deposit claims, initially for collateral and margin use. Clients’ account balances remain in BNY’s traditional systems. Citi’s cash-management pilot enables transfers among participating branches 24/7, subject to transaction limits. A separate tokenized-deposit trade service remains in pilot mode. ## Links in this article - [Morpho-backed borrowing service](https://www.tokenpost.com/news/business/24251)