- Coinbase now allows users to borrow up to $1M in USDC using ETH as collateral.
- Loans run on Morpho and Base, following more than $1B in BTC loan originations.
- Coinbase aims to grow crypto-backed borrowing into a major liquidity alternative.
Coinbase has expanded its crypto-collateral lending system, announcing that users can now borrow USDC using Ethereum (ETH) as collateral. The new feature mirrors the exchange’s Bitcoin-backed lending program but sets a separate borrowing cap — up to $1 million per user using ETH, compared to $5 million available for BTC-backed loans.
The service is currently open to U.S. users outside of New York, with Coinbase noting that more supported assets and global regions are scheduled to follow.
Powered by Morpho and Base, With Fast Growth Behind the Scenes
All ETH-backed loans run on Base, Coinbase’s Ethereum Layer-2 network known for low fees and secure settlement. The lending infrastructure is powered by Morpho, the same protocol behind Coinbase’s earlier BTC lending system.
Coinbase recently surpassed $1 billion in on-chain Bitcoin loan originations just eight months after launch — momentum that CEO Brian Armstrong described as showing “hockey-stick growth” across the on-chain economy.
Liquidity Without Selling: Coinbase Builds Out Its Lending Ecosystem
The addition of ETH borrowing marks another step in Coinbase’s effort to position crypto-backed loans as a mainstream financial tool. Rather than selling crypto during volatile markets, users can now tap liquidity directly from their long-term holdings while keeping exposure to price swings.
Even with broader market volatility, COIN stock traded only slightly lower on Thursday, and retail sentiment around the exchange stayed neutral, signaling steady interest despite recent macro pressures.
