Bitcoin News
By Sakamoto Nashi
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How Coinbase Onchain Loans Work. The bitcoin-backed loan program leverages Morpho, a DeFi protocol within the Coinbase Ventures…
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Loan Limits and Growth. Initially, borrowers could access up to $100,000 in USDC against their bitcoin holdings.
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Key Features and Mechanics. Coinbase onchain loans require over-collateralization with a minimum 133% collateral ratio, though…
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Historical Context. Coinbase previously offered a bitcoin-backed loan program for retail customers, which was…
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Expanding Coinbase’s DeFi Services. The bitcoin-backed loan service is part of Coinbase’s broader push into onchain finance.
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Market Implications. The rapid adoption of bitcoin-backed loans demonstrates increasing confidence in DeFi protocols…
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Coinbase has officially crossed a major milestone, originating over $1 billion in onchain loans using bitcoin as collateral through the DeFi protocol Morpho.
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Coinbase CEO Brian Armstrong highlighted the platform’s ambition for the future, posting on X: “Next goal: $100B in onchain borrow originations.
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The bitcoin-backed loan program leverages Morpho, a DeFi protocol within the Coinbase Ventures portfolio, to provide users with USDC loans without selling their bitcoin.
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When a user opts for an onchain loan, their bitcoin is converted 1:1 into Coinbase-wrapped bitcoin (cbBTC) at no cost.
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Initially, borrowers could access up to $100,000 in USDC against their bitcoin holdings. After strong early adoption—generating $130 million in originations within the first few…
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In a recent update, the company announced plans to increase the maximum loan size to $5 million, reflecting growing demand in the onchain lending market.
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Coinbase onchain loans require over-collateralization with a minimum 133% collateral ratio, though borrowers can select a higher loan-to-value (LTV) level if desired.
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Interest rates are dynamically adjusted with each block on Base, Coinbase’s Ethereum Layer 2 network, while repayments remain flexible.
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Currently, bitcoin is the sole collateral option for the program, though Coinbase has expressed intentions to support additional cryptocurrencies in the future.
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