Coinbase Unveils ETH-Backed Loans Up to $1M for USDC Borrowing

Coinbase now lets eligible users borrow up to $1 million in USDC using ETH as collateral via Morpho, with flexible repayment and variable rates. The service is available in most U.S. states, excluding New York.

Coinbase has expanded its on-chain lending product to allow eligible users to borrow up to $1 million in USDC using ether (ETH) as collateral, without selling their crypto holdings. The service is powered by the Morpho protocol on the Base network, with Coinbase providing the user interface. Wrapped ETH (WETH) is currently accepted as collateral, with support for staked ETH planned. Borrowers can access up to 75% of their collateral’s value, with liquidation triggered at an 86% loan-to-value ratio. There is no fixed repayment schedule as long as the LTV remains healthy, and interest rates are variable, set by supply and demand on Morpho. The ETH-backed loans are available to verified users in the U.S., excluding New York, with plans for international expansion. This move follows the success of Coinbase’s BTC-backed lending product and comes amid record growth in on-chain credit markets, where DeFi platforms now account for more than half of all outstanding crypto-backed loans.