Coinbase Adds Fixed-Rate Bitcoin-Backed USDC Loans via Morpho

Coinbase has introduced a new borrowing option that lets users take out USDC loans secured by Bitcoin with a fixed interest rate and a predetermined repayment date. The feature is built on Morpho’s latest protocol, Morpho Midnight, and represents the first large‑scale enterprise deployment of the fixed‑rate framework.

How the fixed‑rate product works

Borrowers select the amount of USDC they wish to receive and the loan term. Both the interest rate and the maturity date are set at the time of borrowing, providing cost certainty that contrasts with the variable‑rate model that dominates most on‑chain lending platforms.

Infrastructure and settlement

The user experience is delivered through Coinbase’s app, while Morpho supplies the underlying credit infrastructure. Settlement of the loans occurs on Coinbase’s Base network, which handles the on‑chain execution and collateral management.

Relationship to existing offerings

Coinbase already offers variable‑rate loans powered by Morpho, with more than $1.4 billion in active loans backed by roughly $3 billion in collateral. The new fixed‑rate option sits alongside these existing products, expanding the choices available to borrowers.

Background and market context

Coinbase first launched Bitcoin‑backed borrowing on Base in early 2025, using Morpho’s technology. Since then, the platform has broadened the range of accepted collateral to include assets such as XRP and Dogecoin. The fixed‑rate launch follows a period of heightened volatility in February, when sharp price declines in Bitcoin and Ethereum triggered record liquidations across Coinbase’s loan book.

Future outlook

Morpho indicates that the protocol is designed to eventually support tokenized stocks and other real‑world assets, suggesting that fixed‑rate products could expand beyond Bitcoin in the coming months.