Coinbase expands Morpho loans with fixed-rate Bitcoin borrowing

Coinbase is rolling out fixed-rate loans that let users borrow USDC against Bitcoin without selling it. The interest rate and repayment date are locked in from the start. The product was announced Tuesday. The launch is the first enterprise-scale deployment of Morpho Midnight. Morpho Midnight supports fixed rates and defined maturities. Coinbase manages the user experience through its app. Morpho provides the credit infrastructure. Coinbase's Base network handles settlement. The fixed-rate loans join Coinbase's existing Morpho-powered variable-rate loans. Coinbase first launched Bitcoin-backed borrowing on Base in early 2025. Morpho said the business has more than $1.4 billion in active loans. The loans are backed by about $3 billion in collateral. Coinbase later expanded accepted collateral beyond Bitcoin to assets including XRP and Dogecoin. A sharp drop in Bitcoin and Ethereum prices in February caused record liquidations across Coinbase's loan book. Morpho said the protocol is designed to eventually support tokenized stocks and other real-world assets.