Coinbase Launches Fixed-Rate USDC Loans Backed by Bitcoin Through Morpho Midnight: how 13 outlets framed it

Fixed-rate USDC on Base

Coinbase rolled out fixed-rate, bitcoin-backed USDC loans that let users borrow the USDC stablecoin against their bitcoin with an interest rate and repayment date set at origination. Coinbase said the fixed-rate offering runs on Morpho Midnight, a decentralized, non-custodial lending protocol for fixed-rate and fixed-term crypto loans launched in July, and it settles transactions on Coinbase’s Ethereum layer 2 network Base. Coinbase positioned the new product as an alternative to its floating-rate lending, with Morpho Blue loans that have more than $1.4 billion in active loans backed by nearly $3 billion in collateral.

Morpho co-founder and CEO Paul Frambot said, “We’re now building on that foundation and starting to scale: new loan types and use cases, bringing onchain credit one step closer to the scale and diversity of global credit markets,” as Coinbase expanded its onchain borrowing options. The announcement also tied the move to the bitcoin-backed credit market, which it said is currently sized at roughly $16 billion, according to the Bitcoin Digital Credit Report compiled by Apyx and BitcoinTreasuries.net.

Defined terms, set maturities

Coinbase set the terms at the time a loan is taken out, and it described the fixed-rate structure as giving users greater certainty over the cost and duration of borrowing. Coinbase’s product uses Morpho Midnight on Base, while Coinbase’s existing variable-rate borrowing uses Morpho Blue, where rates change based on demand and supply conditions. Coinbase spokespersons and company materials said borrowers must repay before maturity, and they said the “End of Month” date refers to the last Friday of the selected month.