Coinbase Expands Bitcoin Lending With Fixed-Rate USDC Loans

Coinbase has expanded its lending services with fixed-rate USDC loans backed by Bitcoin, allowing borrowers to lock in both their interest rate and repayment date when they take out a loan.

The Nasdaq-listed crypto exchange said the new option provides more certainty than its existing floating-rate loans, where borrowing costs can change depending on supply and demand.

The fixed-rate product is powered by Morpho Midnight, a decentralized, non-custodial protocol for fixed-term and fixed-rate crypto lending that launched in July. Transactions are settled on Base, Coinbase’s Ethereum layer-2 network.

Coinbase’s existing Bitcoin-backed loans use Morpho Blue, which operates with variable rates that adjust according to market conditions. Those rates can rise when demand for borrowing increases. The floating-rate product currently has more than $1.4 billion in active loans backed by nearly $3 billion of collateral.

The new fixed-rate service will operate alongside the existing lending option, giving users a choice between predetermined borrowing costs and rates that move with the market.

Fixed-rate Bitcoin-backed loans are already available from lenders such as Ledn and SATL Lending. Coinbase’s offering stands apart by bringing the structure into an onchain environment through a DeFi protocol while making it available through a mainstream consumer crypto platform.

Morpho co-founder and CEO Paul Frambot said the partnership with Coinbase is now entering a scaling phase after the initial products gained traction.

The companies are working on additional loan types and use cases as they seek to expand onchain credit and make it more comparable in scale and variety to traditional credit markets.

The Bitcoin-backed credit market is currently estimated at about $16 billion, according to the Bitcoin Digital Credit Report compiled by Apyx and BitcoinTreasuries.net. Some estimates suggest the sector could reach $130 billion by 2030 as preferred-equity structures become more widespread.

Demand for crypto-backed credit could support that expansion. Protocol Theory surveyed 1,244 cryptocurrency holders in the U.S. and Australia during February and March 2026, finding that 88% said they would consider using a crypto-backed loan or credit product.

Coinbase’s fixed-rate offering gives Bitcoin holders a way to access USDC liquidity while keeping the financing cost and repayment schedule fixed from the beginning.