Coinbase Tops $1 Billion in Bitcoin-Backed Onchain Loans via Morpho
Coinbase has quietly crossed $1 billion in onchain loans backed by Bitcoin , eight months after launching the program. The loans, issued via the DeFi protocol Morpho , allow users to access liquidity in USDC without selling their Bitcoin, blending traditional finance familiarity with decentralized finance innovation.
Originally capped at $100,000 per borrower, the service quickly expanded to $1 million, with plans to increase the limit to $5 million . Coinbase CEO Brian Armstrong described the milestone as “hockey stick growth” and set a bold next target: $100 billion in onchain borrow originations .
The mechanism is elegant in its simplicity. Users’ Bitcoin is converted into Coinbase-wrapped Bitcoin (cbBTC) and transferred to Morpho, which disburses the USDC loan. Loans require at least 133% collateralization , with interest rates adjusting automatically and repayment schedules remaining flexible.
Currently limited to Bitcoin, Coinbase intends to support additional cryptocurrencies over time. The service is available to U.S. users outside New York, complementing a recent rollout allowing users to lend USDC onchain with yields up to 10.8% , signaling a broader push into decentralized finance for mainstream users.
Source:
A.M.
