Coinbase has launched fixed-rate loans that let users borrow USDC against Bitcoin while locking in the borrowing cost and repayment date from the outset.
The Nasdaq-listed exchange said customers can now use their BTC holdings as collateral for dollar-pegged USDC loans with a predetermined interest rate. The product gives borrowers an alternative to Coinbase’s existing variable-rate lending service, where costs can change during the life of a loan.
The new offering runs on Morpho Midnight, a decentralized, non-custodial protocol designed for fixed-rate and fixed-term crypto lending. Transactions are settled on Base, Coinbase’s Ethereum layer-2 network.
Coinbase’s earlier Bitcoin-backed loans use Morpho Blue, where rates are determined by market supply and demand. Borrowing costs can therefore increase when demand for loans rises. The existing floating-rate product has more than $1.4 billion in outstanding loans backed by nearly $3 billion in collateral.
Coinbase said the fixed-rate model expands onchain borrowing by providing greater predictability over both the cost and duration of credit.
Fixed-rate Bitcoin-backed loans are already available through lenders such as Ledn and SATL Lending. Coinbase’s approach combines the model with onchain settlement, a DeFi lending protocol and access through a widely used consumer crypto platform.
Morpho co-founder and CEO Paul Frambot said the companies are building on the initial success of their partnership by expanding the range of lending products and use cases.
He said the focus is now on scaling onchain credit and developing new loan structures that could bring decentralized lending closer to the breadth of traditional credit markets.
The Bitcoin-backed credit sector is currently worth about $16 billion, according to the Bitcoin Digital Credit Report published by Apyx and BitcoinTreasuries.net. Some estimates project the market could reach $130 billion by 2030 as preferred-equity structures expand.
Interest in crypto-backed borrowing also appears high among asset holders. Protocol Theory surveyed 1,244 cryptocurrency holders in the U.S. and Australia between February and March 2026, finding that 88% said they would consider taking out a crypto-backed loan or credit product.
Coinbase’s fixed-rate product gives Bitcoin holders another way to access USDC liquidity while keeping their BTC exposure, with the loan’s interest rate and maturity established when the borrowing begins.
