Coinbase has expanded its crypto lending offerings by integrating the Morpho Midnight protocol for issuing loans in USDC secured by Bitcoin. The new model features predefined conditions: the borrower knows the rate and repayment date at the time of taking out the loan. This complements the existing mechanism based on Morpho Blue with a variable rate. According to the company, the volume of outstanding loans with a variable rate has exceeded $1.4 billion, while the total collateral stands at around $3 billion. This feature allows users to obtain liquidity without selling their Bitcoin.
“Coinbase Borrow provides our clients with access to liquidity without the need to sell their assets, and fixed-rate lending gives them even more options in how they manage this loan,” said Jacob Franz, head of yield and investments at Coinbase.
Morpho launched Midnight on the Base network in July. Interest rates are not set directly by Coinbase or Morpho – they are determined by supply and demand through an on-chain order book. At the time of Midnight's launch, deposits in the protocol amounted to around $30 million. In comparison, Morpho Blue, across all integrations, serviced $5.2 billion in outstanding loans and $16 billion in deposits. Coinbase itself did not disclose the rates. According to Morpho, Coinbase is the first major consumer platform to offer loans through Midnight on a large scale. Market makers also utilize the protocol, and Tenor Labs launched a lending platform based on it in July.
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