Coinbase launches fixed-rate Bitcoin loans via Morpho

Decrypt reports that Coinbase is introducing fixed-rate lending options utilizing the Morpho protocol. The new feature permits users to secure USDC stablecoin loans against their Bitcoin assets, establishing a specific interest rate and maturity date at the start of the term.

This rollout represents the initial large-scale implementation of Morpho Midnight, an updated protocol variant engineered to accommodate fixed rates and set expiration dates. Coinbase manages the customer interface through its application, while Morpho supplies the core credit technology and the Base network executes the financial settlements.

These fixed-rate instruments operate parallel to Coinbase’s current variable-rate products, which also rely on Morpho. The company introduced Bitcoin-collateralized borrowing on Base earlier in 2025. Morpho indicates that this prior portfolio has grown to include over $1.4 billion in active lending, supported by approximately $3 billion in collateral.

Morpho described the rapid development period as proof that financial technology firms can integrate complex credit solutions using open systems. Although the current integration focuses on Bitcoin, the protocol architecture is intended to facilitate tokenized equities and other real-world assets in the future.