Coinbase users can borrow USDC against bitcoin at a fixed rate

Nasdaq-listed Coinbase now lets users borrow dollar-pegged USDC against their bitcoin holdings. The fixed-rate loans set the interest rate and repayment date when users borrow. The offering runs on Morpho Midnight, a decentralized, non-custodial protocol for fixed-rate and fixed-term crypto loans. Morpho Midnight launched in July this year. Transactions settle on Coinbase's Base Ethereum layer 2 network. Coinbase's existing variable-rate loans run on the Morpho Blue protocol. Morpho Blue rates change based on supply and demand conditions. Rates can rise when borrowing demand increases. Coinbase's variable-rate lending business has more than $1.4 billion in active loans. Those loans are backed by nearly $3 billion in collateral.