Coinbase Launches Fixed-Rate USDC Loans Collateralized by Bitcoin
Written with artificial intelligence.
Coinbase has introduced a new fixed-rate USDC loan product backed by Bitcoin through its integration with Morpho Midnight. Users can lock in their interest rates and repayment dates, with options for loans maturing at the end of this month or next month.
New Lending Product from Coinbase
On September 22, Coinbase announced the launch of a fixed-rate USDC lending product that is collateralized by Bitcoin, integrating with Morpho Midnight. This feature allows users to secure their interest rates and set repayment dates at the time of borrowing.
Comparison with Existing Offerings
This new loan product operates alongside Coinbase's existing floating-rate loans, which utilize Morpho Blue. Currently, there are over $1.4 billion in outstanding loans and approximately $3 billion in collateral associated with this floating-rate offering.
Deployment on Base Chain
Morpho has reported that Midnight has been deployed on the Base chain, with current deposits amounting to around $30 million. Coinbase is offering two maturity options for these loans: one at the end of this month and another at the end of next month. Importantly, if the loan is not repaid by the due date, lenders will have the right to liquidate the borrower's collateral.
Future Applications
Morpho believes that the Midnight platform could also be utilized for structured credit and real-world asset (RWA) mortgage scenarios, indicating potential future expansions for its lending capabilities.