Coinbase adds fixed-rate bitcoin-backed loans through Morpho Midnight
What Coinbase is rolling out
Coinbase has added fixed-rate bitcoin-backed loans through Morpho Midnight, allowing users to borrow USDC with an interest rate and repayment date set when the loan is taken out. The new option sits alongside Coinbase's existing variable-rate loans, which use a separate Morpho protocol called Morpho Blue.
Key points
- Coinbase users can now choose between fixed-rate and variable-rate onchain loans backed by bitcoin.
- The new fixed-rate option runs through Morpho Midnight, which launched on Base in July.
- Coinbase's variable-rate loans through Morpho Blue have more than $1.4 billion outstanding, backed by roughly $3 billion in collateral.
- Coinbase is the first major consumer platform to offer loans through Midnight at scale, according to a Morpho spokesperson.
How the fixed-rate loans work
Morpho Midnight sets the interest rate and repayment date upfront when a borrower takes out a loan. Coinbase currently offers loans due at the end of the current month or the end of the next month. "End of Month" means the last Friday of the month, a Coinbase spokesperson said. Borrowers must repay before the maturity date; if a loan goes unpaid, the lender has a claim on the collateral posted by the borrower.
Coinbase manages the app experience, Morpho provides the lending protocol, and transactions settle on Base, a Coinbase-backed blockchain. A Coinbase spokesperson declined to share the interest rates offered to borrowers using Midnight. The rates are determined by supply and demand as lenders and borrowers place offers on an onchain order book.
How big the lending programs are
Midnight has around $30 million in deposits as it rolls out, according to a Morpho spokesperson. Morpho Blue, the variable-rate protocol, has $5.2 billion in outstanding loans and $16 billion in deposits across all integrations, covering the wider Morpho network rather than just Coinbase.
What is confirmed
Coinbase has launched fixed-rate bitcoin-backed USDC loans through Morpho Midnight. The loan terms, including rate and repayment date, are set at the time of borrowing. Coinbase is the first major consumer platform to use Midnight at scale, per a Morpho spokesperson. Coinbase manages the user-facing experience while Morpho provides the underlying protocol.
What is still unclear
A Coinbase spokesperson declined to share the interest rates offered through Midnight. The spokesperson also said rates are set by supply and demand on an onchain order book, but no specific rate ranges were disclosed. Morpho said Midnight could also be used to create structured credit products and loans backed by tokenized real-world assets, but the spokesperson declined to name firms or provide a timeline for such integrations.
Why this matters for crypto borrowing
Most onchain lending has offered variable rates, meaning borrowing costs can shift over time. Midnight introduces fixed rates and defined loan terms, giving borrowers more predictability. As Jacob Frantz, yield and investments product lead at Coinbase, stated: "Coinbase Borrow gives our customers access to liquidity without having to sell their assets, and fixed-rate borrowing gives them even greater choice over how they manage that credit."
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.