Coinbase Ties cbBTC to Fixed-Rate USDC Loans on Morpho Midnight, Locks In the Rate 💼

Coinbase has launched fixed-rate USDC loans collateralized by cbBTC through the Morpho Midnight protocol on Base, expanding its onchain borrowing lineup alongside the existing variable-rate product powered by Morpho Blue. Borrowers receive a defined interest rate and maturity at origination, letting them unlock liquidity against their bitcoin holdings without selling. Coinbase oversees the customer experience, Morpho operates the lending protocol and Base handles settlement.

The new product targets users who want predictable costs rather than floating exposure. Jacob Frantz, yield and investments product lead at Coinbase, said the structure gives customers more control over their credit. "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," Frantz said.

Morpho Midnight launched on Base in July and holds $30 million in deposits, while Morpho Blue has $16 billion across its integrations. Coinbase's existing variable-rate borrowing book on Morpho Blue carries over $1.4 billion in outstanding loans backed by roughly $3 billion in collateral, figures cited by the exchange.

Separately, Coinbase began a phased rollout of 24/7 trading in almost 4,000 U.S. stocks for eligible UK customers, with support for fractional shares and GBP funding. The lending and equities initiatives arrive as the exchange broadens its prime-style services for retail and institutional users.