Coinbase users can now borrow the USDC stablecoin against their Bitcoin through loans with a fixed interest rate and a repayment date agreed when the loan begins.
The new product is designed to give borrowers certainty over the key terms of the arrangement. Both the interest rate and the date on which the loan must be repaid are set at origination, rather than changing during the life of the loan.
The loans operate on Morpho Midnight, a noncustodial lending protocol, and are settled on Base, Coinbase’s Ethereum layer 2 network.
Under the arrangement, users provide Bitcoin as collateral while borrowing USDC. The service therefore links Coinbase’s Bitcoin holdings and stablecoin borrowing products through a structure in which the loan terms are established in advance.
The fixed-rate offering extends Coinbase’s existing lending business, which uses variable rates. That operation currently has more than $1.4 billion in active loans backed by nearly $3 billion in collateral.
Unlike the new product, the existing variable-rate service does not set its borrowing rate in the same fixed format at the point the loan is originated. Coinbase is now offering both approaches, with the new service focused on predetermined pricing and repayment dates.
The product is built using Morpho Midnight while settling on Base, allowing Coinbase to introduce the fixed-rate loans through infrastructure connected to its wider digital-asset ecosystem. The company’s existing lending activity provides the broader context for the launch, with the variable-rate business already accounting for more than $1.4 billion in outstanding loans.
No repayment date or interest rate was specified in the announcement beyond the confirmation that both are fixed when each loan is created. The terms therefore depend on the individual arrangement established between the borrower and the service at origination.
