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Coinbase Introduces Bitcoin-Backed Loans with DeFi Integration

Coinbase Introduces Bitcoin-Backed Loans with DeFi Integration

Coinbase has launched a new service allowing users to borrow up to $100,000 in USDC by using Bitcoin as collateral.

Built on the Morpho DeFi protocol and powered by its Ethereum-based layer-2 network, Base, this initiative bridges traditional finance and decentralized systems. Currently limited to U.S. customers, excluding New York, Coinbase may extend the service to other regions in the future.

This service enables Bitcoin holders to access liquidity without selling their assets. Borrowers pledge Bitcoin, which is converted into cbBTC—a wrapped version designed to interact with decentralized finance platforms. The cbBTC is deposited into Morpho, and USDC is instantly credited to the borrower’s account.


READ MORE: Top Italian Bank Enters the Crypto Market with €1M Bitcoin Purchase


Repayments are flexible, as users can pay back the loan on their own schedule, provided the loan-to-value (LTV) ratio remains secure. If Bitcoin’s value drops significantly, Coinbase will liquidate the collateral to manage risks.

While Bitcoin is the only collateral option for now, Coinbase plans to support additional cryptocurrencies in the future. This new offering reflects the company’s ongoing push to expand its services and integrate decentralized finance with accessible tools for retail and institutional users alike.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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