Now get a USDC loan without selling your bitcoin

TL;DR: Bitcoin-backed loans are rolling out on Coinbase. Customers can instantly borrow USDC at competitive interest rates with flexible, open-ended repayment terms. Loans are powered by Morpho, an open source lending protocol on Base. Crypto-backed loans will launch with bitcoin as collateral, with plans to add more assets in the future. Loans are available to customers starting in the U.S., excluding New York State, with plans to expand to more markets.

Getting a bitcoin-backed loan on Coinbase is now easier and faster than ever. In under a minute, you can get a loan in USDC without ever having to sell your bitcoin. You can earn over 4% in USDC rewards, send USDC globally for free, and use it onchain. You can also convert USDC to USD 1:1 for free to cover major expenses like buying a car or making a downpayment on your mortgage. Borrowing against bitcoin instead of selling it, can help delay a tax gain or loss. Crypto-backed loans on Coinbase are powered by Morpho, an onchain lending protocol built on Base, and grant access to competitive interest rates set by Morpho’s onchain open market lending pool. You no longer have to choose between preserving wealth for the future and spending it today. 

The future of personal finance is onchain

Crypto-backed loans are another major step towards empowering our customers with greater control over their financial lives. Coinbase customers can now get easier, faster access to everyday financial services, leveraging onchain innovation across Coinbase, Base, and the wider cryptoeconomy. They benefit from the transparent, decentralized services enabled by onchain protocols, which can now be accessed through a more seamless, intuitive user experience on Coinbase.

The launch of Coinbase Wrapped Bitcoin (cbBTC) in September gave our customers the ability to move and use their bitcoin onchain. Now, customers can tap into the benefits of cbBTC without having to leave Coinbase. When you borrow USDC against bitcoin, your collateral is automatically converted to cbBTC (1:1) for free and transferred to the Morpho protocol. Combined with the everyday utility of USDC, crypto-backed loans showcase the power of onchain tech to offer vastly improved financial services.  

Getting started is easy

You can now borrow USDC in under a minute. 

• To access crypto-backed loans, go to the Cash tab within your Coinbase app, click on Borrow, and enter the amount of USDC you want to borrow against your BTC. To start, you can borrow up to $100,000 USDC depending on how much bitcoin you have to pledge as collateral. This service will be available on the Coinbase app with plans to roll out to the web browser.

• Once you confirm the amount, the BTC that you choose to pledge as collateral will be converted to cbBTC and transferred onchain to a Morpho smart contract. Morpho will then disburse the USDC loan, which you will see in your Coinbase account within seconds. 

• Interest rates are variable and calculated automatically by Morpho based on market conditions – such that it varies every few seconds with each block creation on the Base blockchain.  

• There is no fixed repayment schedule and users will always have the flexibility to choose when to pay down their loan. 

• If the amount of your loan, including accrued interest, reaches a certain threshold relative to the value of your collateral, liquidations are triggered. You can monitor your loan directly from your Coinbase app