Coinbase Introduces Fixed-Rate Bitcoin-Backed Loans via Morpho Midnight
Coinbase has expanded its lending services by introducing fixed-rate Bitcoin-backed loans through the Morpho Midnight protocol on the Base Layer-2 blockchain. While Coinbase has previously offered variable-rate USDC loans against Bitcoin, these new fixed-rate options provide a different structure where collateral is converted to Coinbase Wrapped BTC and locked in smart contracts. These loans are designed for short-term liquidity, with maturity dates set for either the last Friday of the current or following month. Unlike variable-rate loans which offer more flexibility and higher loan-to-value (LTV) limits, these fixed-rate products require full repayment by the maturity date to avoid collateral claims. Investors should remain cautious due to Bitcoin's volatility, as even minor price drops can trigger liquidation if LTV ratios are not carefully managed.
Tickers: $COIN
Topics: Base blockchain Bitcoin-backed loans Coinbase Borrow Fixed-rate loans Morpho Midnight