Coinbase Launches Fixed-Rate USDC Loans Backed by cbBTC via Morpho Midnight

Coinbase has added fixed-rate USDC loans backed by cbBTC, giving customers another way to borrow against bitcoin without selling their collateral. The service runs through Morpho Midnight on Base and sets the borrowing rate and maturity when a loan begins.

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Coinbase Adds Fixed-Rate Loans Through Morpho Midnight

Coinbase launches fixed-rate USDC Loans Backed by cbBTC, giving customers a choice between fixed-rate and variable-rate onchain borrowing. The exchange already provides access to variable-rate borrowing with the Morpho Blue platform, with users holding over $1.4 billion in outstanding loans, and roughly $3 billion worth of collateral.

The new product uses Morpho Midnight, which launched on Base in July. In contrast to variable-rate borrowing, Midnight enables borrowers to negotiate with the lender on the interest rate and the time of repayment. Coinbase is responsible for the customer experience, Morpho for the lending protocol and Base for the transactions.

“Coinbase Borrow gives our customers access to liquidity without having to sell their assets, and fixed-rate borrowing gives them even greater choice over how they manage that credit,” Coinbase yield and investments product lead Jacob Frantz said.

Meanwhile, Coinbase began rolling out 24/7 trading in almost 4,000 U.S. stocks for eligible UK customers, enabling them to trade American stocks. The phased rollout also entails fractional shares, funding via GBP or USDC.

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Borrowers Get Defined Rates and Maturity Dates

Coinbase currently offers loans that mature either at the end of the current month or the following month. The “End of Month” date refers to the final Friday of that month, a Coinbase spokesperson said.

Borrowers must repay their USDC loans before maturity. Otherwise, lenders can make a claim against the cbBTC collateral securing the loan. The interest rates are based on the supply and demand of lenders and borrowers, who make offers through an onchain order book.

As reported earlier by CoinGape, crypto exchange Coinbase has also launched IPO access for U.S. retail customers, starting with the Oura public listing. The service allows eligible users to request shares at the offer price before open-market trading begins.

Morpho Expands Fixed-Rate Onchain Credit

Midnight currently holds about $30 million in deposits as the protocol continues its rollout. In comparison, Morpho Blue has about $5.2 billion in outstanding loans and $16 billion in deposits across all integrations. Those figures cover Morpho’s wider network rather than Coinbase alone.

Furthermore, Morpho stated that Midnight might enable structured credit products and loans secured by real-world assets tokenized. More integrations are also planned, although Morpho has not disclosed the companies involved or a launch schedule.

Coinbase’s integration adds fixed-term borrowing alongside its existing variable-rate product, giving customers two different loan structures through Morpho.

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