Coinbase adds fixed-rate bitcoin-backed loans via Morpho Midnight
DeFi & Yields ·
Coinbase has integrated Morpho Midnight to let users borrow against bitcoin collateral at a fixed interest rate, according to The Block.
The new offering allows borrowers to post bitcoin as collateral and receive USDC loans at a fixed rate, rather than a rate that floats with market conditions. The integration is aimed at expanding lending options for institutional users, according to The Block.
Fixed-rate structuring differs from typical crypto lending markets, where borrowing costs usually adjust with utilization and demand. A locked-in rate gives institutional borrowers more predictable financing costs when using bitcoin holdings as collateral rather than selling the asset outright.
The move is part of a broader pattern of exchanges building out credit products on top of bitcoin holdings rather than requiring liquidation to access cash. Several reports describe the same rollout in similar terms — fixed-rate BTC-secured loans built in partnership with Morpho Midnight — pointing to consistent coverage of the launch across multiple outlets.
Details on loan sizing, collateralization ratios, liquidation mechanics, and which institutional clients qualify for the product have not been specified in the available reporting. It also remains unclear whether the fixed-rate structure will extend beyond USDC-denominated loans or expand to other collateral types over time.