Coinbase launches fixed-rate Bitcoin-backed loans via Morpho Midnight

Bitcoin-backed loans — Coinbase has integrated fixed-rate lending into its platform, enabling users to borrow USDC against their Bitcoin holdings through the Morpho Midnight protocol.

The new offering provides a predictable borrowing cost, a contrast to the variable interest rates common in many decentralized finance (DeFi) lending markets. Users can access these loans directly from their Coinbase accounts, using their Bitcoin as collateral to secure a USDC loan.

The service is powered by Morpho Midnight, a lending protocol built on the Base network, which is incubated by Coinbase. This move expands Coinbase’s suite of financial services, bridging its custodial platform with on-chain DeFi infrastructure to offer more sophisticated yield and credit products.

By offering fixed-rate terms, Coinbase aims to attract users seeking stability for financial planning or hedging strategies, directly competing with other crypto-native lending services that have traditionally offered variable rates.