Coinbase launches fixed-rate loans backed by Bitcoin

Coinbase announced an expansion of its Morpho lending product to include fixed-rate loans backed by Bitcoin. Eligible Coinbase customers can pledge BTC as collateral and lock a set interest rate for the life of the loan.

The product is available through Coinbase’s Morpho integration, which connects on-chain lending mechanics with the exchange’s custody and user interface. Accounts that complete identity verification and meet eligibility requirements on Coinbase can apply for a Morpho fixed-rate loan on the platform.

Borrowers post Bitcoin as collateral and receive a loan with a predetermined interest rate for a specific term. Loans must meet collateralization levels set by Coinbase and include standard liquidation protections. If the value of pledged BTC falls below required thresholds, Coinbase may liquidate collateral to cover outstanding debt according to the platform’s terms.

The product will be offered only in jurisdictions where Coinbase provides lending services and only to accounts that pass compliance checks. Exact loan terms, collateral ratios and interest rates will vary by product and borrower profile. Coinbase posted detailed terms and disclosures on its platform and advised users to review those materials before applying.

Morpho began as a protocol that aggregated lending markets to improve rates and capital efficiency on decentralized platforms. Coinbase added Morpho features as part of its effort to expand crypto-related financial services. Earlier Morpho offerings commonly used variable rates; the new fixed-rate option gives borrowers a way to lock predictable payments while using BTC for liquidity.

Risks for borrowers include price volatility, margin calls and the possibility of rapid liquidation if market conditions deteriorate. Using Bitcoin as collateral can also mean missing out on price appreciation while the asset is pledged. Market participants have noted a wider industry trend of exchanges offering asset-backed loans and adding fixed-rate products to meet demand for predictable borrowing costs.