- Fixed-rate USDC loans secured by cbBTC are introduced by Coinbase.
- Base’s fixed-rate borrowing service is powered by Morpho Midnight.
- Interest rates and repayment schedules can be fixed in advance by borrowers.
- Users of Coinbase can obtain USDC liquidity without having to sell their Bitcoin holdings.
Coinbase has launched fixed-rate USDC borrowing backed by cbBTC, expanding its existing onchain lending options. The new service gives borrowers a choice between fixed-rate and variable-rate loans, with the latter already available through Morpho Blue.
Introducing Borrow with @CoinbaseDev Wallets, a simple way to bring crypto-backed USDC loans directly into your app.
Browse products, open collateralized positions, and manage them over time. Starting with @Morpho Blue on @Base ↓ https://t.co/8q7WzjscMx
— Coinbase Developer Platform🛡️ (@CoinbaseDev) September 22, 2026
Coinbase said users currently hold more than $1.4 billion in outstanding loans, backed by roughly $3 billion in collateral through its variable-rate borrowing offering.
The fixed-rate product is powered by Morpho Midnight, which launched on Base in July. Unlike variable-rate lending, Midnight allows borrowers and lenders to agree on the interest rate and repayment date before the loan begins.
Coinbase handles the customer-facing experience, while Morpho provides the lending infrastructure and Base processes the underlying transactions.
“Coinbase Borrow gives our customers access to liquidity without having to sell their assets,” said Jacob Frantz, Coinbase’s yield and investments product lead. He added that fixed-rate borrowing gives customers more choice in managing credit.
Loans Come With Set Rates & Maturity Dates
Coinbase currently offers maturity dates at either the end of the current month or the following month. The company defines the “End of Month” date as the final Friday of the respective month.
Borrowers are required to repay their USDC loans before maturity. If they fail to do so, lenders can make a claim against the cbBTC collateral securing the loan.
Loan rates are determined by supply and demand, with borrowers and lenders making offers through an onchain order book. This structure gives participants more certainty over borrowing costs and repayment timing compared with variable-rate loans.
The launch comes as Coinbase continues expanding beyond its core crypto trading business. The exchange has also been rolling out access to U.S. stock trading for eligible UK customers and recently introduced IPO access for eligible U.S. retail users.
Morpho Midnight Builds Out Fixed-rate DeFi Credit
Morpho Midnight currently holds around $30 million in deposits, reflecting its ongoing rollout. Morpho Blue, meanwhile, has approximately $5.2 billion in outstanding loans and $16 billion in deposits across its broader ecosystem.
Morpho has also said Midnight could support structured credit products and loans backed by tokenized real-world assets. Additional integrations are expected, although specific partners and launch dates have not been disclosed.
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