Coinbase Introduces Ether-Backed Loans for US Customers
- Coinbase has launched a new loan product allowing users to borrow up to $1 million in USDC against their ETH holdings.
- The service is available in most US states, excluding New York, and features variable rates influenced by market conditions.
- This offering is powered by Morpho, a decentralized finance (DeFi) lending protocol integrated into the Coinbase app.
- Coinbase’s onchain lending markets have processed over $1.25 billion in loans, with approximately $810 million currently outstanding across more than 13,500 active wallets.
- Future expansions may include loans backed by staked Ether (cbETH) as part of Coinbase’s growth strategy.
The launch of Ether-backed loans marks a significant development in the cryptocurrency lending space, providing users with liquidity options without needing to sell their assets. This aligns with Coinbase’s broader efforts to expand its offerings following recent regulatory changes favoring crypto innovation.
With over $1.25 billion processed in loan originations, this new product enhances Coinbase’s position in the DeFi market and offers substantial borrowing potential for users.(Source)
