Coinbase revealed that its bitcoin-backed loan program has surpassed $1 billion in originations since launching in January, underscoring increasing demand for crypto as collateral.
Offered through the on-chain Morpho platform, the service allows U.S. retail customers to borrow cash while holding onto their bitcoin, similar to how homeowners tap property equity.
The average loan size sits at $54,000, with use cases ranging from debt consolidation to real estate investment, tax payments, and large purchases.
Currently capped at $1 million, Coinbase plans to raise borrowing limits to $5 million in the coming weeks, positioning the program for wealthier investors.
The expansion reflects broader growth in asset-based lending, a market projected to reach $1.3 trillion by 2030. By leveraging bitcoin as collateral, Coinbase is integrating crypto into traditional lending practices and offering clients flexible liquidity solutions without forcing asset sales.
The milestone reinforces bitcoin’s utility beyond speculation, highlighting its role in financial innovation.
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