Coinbase Launches Fixed-Rate Bitcoin-Backed Loans Through Morpho Midnight
Summary
- Coinbase said it has launched a new fixed-rate USDC loan service backed by Bitcoin (BTC).
- The company said the service integrates Morpho’s Midnight to let users lock in the interest rate and repayment date at the time of borrowing.
- Coinbase said its existing Morpho Blue-based variable-rate loan product has already surpassed $1.4 billion in outstanding loans and $3 billion in collateral, and that the addition of fixed-rate loans expands users’ credit management options.
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Coinbase has launched a new service that lets users take out fixed-rate loans backed by Bitcoin.
The company added a USDC loan product integrated with Morpho’s fixed-rate offering, Midnight, allowing users to lock in both the interest rate and the repayment date at the time of borrowing, according to a Sept. 22 report by crypto media outlet The Block.
Coinbase’s existing variable-rate loan product operates on the Morpho Blue protocol. According to Coinbase, outstanding loans on that service have exceeded $1.4 billion, while collateral totals about $3 billion.
Morpho launched Midnight on the Base network in July. The product introduced fixed rates and set maturities to an on-chain lending market where variable-rate loans have generally been the norm. A Morpho spokesperson told The Block that Coinbase is the first major consumer platform to offer Midnight at scale. Midnight currently holds about $30 million in deposits.
Coinbase is currently offering two loan products, with maturities at the end of September or the end of October. Borrowers are expected to repay by maturity, and if they do not, lenders have a claim on the collateral assets. Rates are determined through an on-chain order book based on supply and demand from lenders and borrowers.
Jacob Frantz, Coinbase’s head of earn and investing products, said Coinbase Borrow allows users to access liquidity without selling their assets. He added that fixed-rate loans give users more options for managing credit.
Under the structure, Coinbase handles the app experience, Morpho provides the lending protocol and transactions are processed on the Base network. Morpho is also considering expansion into structured credit products using Midnight and loans backed by tokenized real-world assets.
