Coinbase Adds Fixed-Rate USDC Loans Backed by Bitcoin

Coinbase has introduced fixed-rate USDC loans backed by Bitcoin, allowing users to know their borrowing cost and repayment date upfront.

The Nasdaq-listed crypto exchange now lets customers borrow the dollar-pegged USDC stablecoin against their Bitcoin holdings without exposure to changing interest rates. The new product sets both the interest rate and repayment date when the loan is initiated.

The fixed-rate offering provides an alternative to Coinbase’s existing floating-rate borrowing products. The exchange said the move expands onchain lending beyond the variable-rate model by giving borrowers greater certainty over the cost and length of their loans.

The new loans operate through Morpho Midnight, a decentralized, non-custodial protocol for fixed-rate and fixed-term crypto lending that launched in July. Transactions are settled on Base, Coinbase’s Ethereum layer-2 network.

The product also changes the structure of Coinbase’s existing Bitcoin-backed lending services. Its current loans operate through Morpho Blue, where interest rates fluctuate according to supply and demand and can rise when borrowing activity increases.

The fixed-rate product will operate alongside the floating-rate option, which currently has more than $1.4 billion in active loans backed by nearly $3 billion worth of collateral.

Fixed-rate Bitcoin-backed borrowing is already offered by companies including Ledn and SATL Lending. Coinbase’s offering differs in that the service combines onchain lending, a DeFi application and a mainstream consumer-facing crypto platform.

Morpho co-founder and CEO Paul Frambot said the partnership with Coinbase has already generated strong activity and that the companies are now focused on expanding the products.

Frambot said the next phase will involve introducing additional loan structures and use cases while expanding onchain credit toward the scale and variety of traditional credit markets.

The Bitcoin-backed lending market is estimated at roughly $16 billion, according to the Bitcoin Digital Credit Report from Apyx and BitcoinTreasuries.net. Some projections put the sector at $130 billion by 2030 as preferred-equity structures become more widely adopted.

Demand for Bitcoin-backed credit could also be significant among crypto holders. A Protocol Theory survey of 1,244 cryptocurrency holders in the U.S. and Australia, conducted between February and March 2026, found that 88% said they would consider using a crypto-backed loan or credit product.

The new Coinbase offering gives Bitcoin holders another way to access liquidity without necessarily selling their BTC, while the fixed-rate structure provides greater certainty around borrowing costs and repayment timing.