Coinbase Launches Fixed-Rate USDC Loans Against Bitcoin

Coinbase began offering fixed-rate USDC loans secured by bitcoin on Tuesday, enabling users to lock in interest rates and repayment schedules at the start of the loan, according to the exchange. The product operates on Base, the Ethereum layer 2 network associated with Coinbase, and utilizes Morpho Midnight, a noncustodial lending protocol that launched in July. This offering adds to the exchange’s current variable-rate lending portfolio, which supports over $1.4 billion in active loans against nearly $3 billion in collateral. In an announcement, the company noted that the new product moves onchain borrowing beyond models that rely primarily on variable rates, providing borrowers with more certainty regarding costs and duration. Morpho CEO Paul Frambot stated that the platforms are expanding their collaborative efforts. “We’re now building on that foundation and starting to scale: new loan types and use cases, bringing onchain credit one step closer to the scale and diversity of global credit markets,” he said. Data from the Bitcoin Digital Credit Report estimates the total value of the bitcoin-backed credit sector at approximately $16 billion, with projections indicating growth to $130 billion by 2030. A survey conducted by Protocol Theory between February and March 2026 found that 88% of 1,244 cryptocurrency respondents indicated they would take out a loan secured by digital assets.