Coinbase Introduces Bitcoin-Backed Loans for US Customers
- Coinbase has launched a service allowing users to borrow up to $100,000 in USD Coin (USDC) using Bitcoin as collateral.
- The service utilizes the Morpho DeFi protocol on Coinbase’s Ethereum layer 2 solution, Base.
- Bitcoin collateral is converted into cbBTC, a wrapped version created by Coinbase, ensuring compatibility with DeFi systems.
- The loan service is available in the United States but excludes New York customers.
- No fees are charged for converting Bitcoin to cbBTC, and loans have flexible repayment terms based on loan-to-value ratios.
Coinbase’s new loan offering allows U.S. customers to access liquidity without selling their Bitcoin by borrowing up to $100,000 in USDC. The service uses the Morpho protocol and ensures risk management through flexible repayment terms.
