- Coinbase launched ETH-backed loans on Base, allowing users to borrow up to $1 million in USDC without selling their Ether.
- Coinbase’s onchain lending markets have surpassed $1.25 billion in loan originations with over 13,500 active borrowers.
- Clearer US crypto regulations have fueled Coinbase’s rapid expansion, including new products, acquisitions and major partnerships.
Coinbase is stepping deeper into the lending world with a new product that lets users borrow against their Ether without selling it, something many investors have been waiting for. The feature is powered by Morpho and runs on Base, which has already pushed more than $1.25 billion in loans through its onchain markets. It’s a big move for anyone who wants liquidity but doesn’t want to give up their ETH, especially in a market that swings as fast as crypto tends to do. And honestly, the timing feels pretty intentional, with US crypto regulation finally clearing up just enough to let companies get bolder.
Borrow Up To $1 Million In USDC Against ETH, With Coinbase Expanding Fast
The new loan product is open to most US users except New York, and it offers variable rates that shift with the market, so borrowers have to keep an eye on their positions. People can borrow up to $1 million in USDC, using their ETH as collateral, and that obviously comes with liquidation risk if prices dip too hard. Coinbase also says more assets are coming soon, including loans backed by cbETH, its staked Ether token. The whole system is built through Morpho, the DeFi lending protocol Coinbase integrated in September, which already gives users up to 10.8% yield on USDC. It’s turning into a full-circle lending ecosystem inside Coinbase’s walls.
Onchain Lending Surges Past $1.25B As More Wallets Join In
According to data from Dune, Coinbase’s onchain lending markets have now processed over $1.25 billion in loan originations, backed by around $1.37 billion in collateral deposits. That’s a lot of money moving through Base, especially considering this part of crypto barely existed a couple years ago. Roughly $810 million in loans are still outstanding, and over 13,500 wallets currently have active borrow positions. It shows a pretty clear trend: people want liquidity, they want it instantly, and they want to stay onchain without touching traditional finance rails. And Coinbase is positioning itself right at the center of that shift.
Regulatory Clarity Pushes Coinbase’s Growth Into High Gear
The broader backdrop here is the Trump administration’s friendlier stance toward crypto, which has opened the door for companies like Coinbase to push ahead with new products. The GENIUS Act, passed in July, gave clearer rules around stablecoins, removing a lot of the uncertainty that held companies back. Since then, Coinbase has been rolling out new offerings at a rapid pace. In October, it acquired Echo for $375 million—the platform built by Jordan Fish that helps communities fund new projects. It also expanded its staking services to New York residents and partnered with Citigroup to help streamline how clients move money between crypto and traditional banking systems. All of it signals a bigger shift: Coinbase isn’t waiting around anymore; it’s building aggressively while the regulatory window is open.
