Coinbase Introduces Fixed-Rate USDC Loans Backed by Bitcoin
- Coinbase now offers fixed-rate loans allowing users to borrow USDC against their bitcoin holdings.
- Interest rates and repayment dates are established at the time of borrowing, providing certainty for users.
- The new offering operates on Morpho Midnight, a decentralized lending protocol launched in July.
- This fixed-rate option complements Coinbase’s existing floating-rate loans, which currently have over $1.4 billion in active loans.
- The floating-rate loans are backed by nearly $3 billion in collateral and can fluctuate based on market demand.
This new lending model marks a significant shift in how Coinbase manages its loan offerings, moving from variable to fixed rates for greater user predictability. The integration with Morpho Midnight enhances the platform’s DeFi capabilities while addressing user demand for stable borrowing costs.
With over $1.4 billion in active loans under the floating-rate model, Coinbase’s introduction of fixed-rate USDC loans aims to provide users with more reliable financial options.(Source)
