Coinbase launches fixed-rate bitcoin-collateralized loans via Morpho Midnight on Base, expanding on existing $1.4B+ floating-rate lending.
DeFi & Yields ·
Coinbase has launched fixed-rate bitcoin-collateralized loans through Morpho Midnight, allowing users to borrow USDC against BTC with locked-in rates and repayment dates on the Base network. The product builds on Coinbase's existing floating-rate bitcoin lending via Morpho Blue, which carries $1.4B+ in outstanding loans backed by roughly $3B in collateral.
Morpho Midnight has been live since July, and the fixed-rate offering represents a shift toward more predictable borrowing terms in on-chain lending. The dual-rate structure—combining both floating and fixed options—gives users flexibility in how they manage bitcoin-backed credit positions, reflecting growing institutional and retail interest in collateralized crypto lending.
The mechanics of rate-locking and whether this attracts material migration from floating positions remain to be observed. Adoption velocity and the total value locked across both Morpho products will signal whether fixed-rate terms materially expand the addressable market for BTC collateral on Base.