Key Highlights:
- Coinbase now offers bitcoin-backed loans with up to $100,000 in USDC, no credit score required.
- The platform integrates Morpho’s lending books directly into Coinbase’s app for seamless borrowing.
Paradisers! What if you could borrow cash without selling a single satoshi of your Bitcoin? That’s the bold new move Coinbase is rolling out, and it could revolutionize how crypto holders manage their funds. By partnering with Morpho, the largest lending platform on its Base network, Coinbase is making it easier than ever to borrow against Bitcoin without sacrificing your precious HODL stack.
The Future of Loans, No Credit Scores Required
Unlike traditional lenders that scrutinize your credit score like a hawk, Coinbase’s bitcoin-backed loans operate in the clean-cut world of decentralized finance (DeFi). Your ability to borrow isn’t tied to your credit rating, it’s about how much Bitcoin you’re willing to post as collateral.
To borrow up to $100,000 in USDC, users need to pledge Bitcoin worth more than the loan amount. If Bitcoin’s price takes a nosedive, Morpho steps in to liquidate enough collateral to keep the system secure. And don’t worry, Coinbase will ping you through its app if your loan-to-value ratio starts dancing too close to danger.
As Max Branzburg, Coinbase’s head of Consumer Products, aptly put it: “This is a moment where we’re planting a flag that Coinbase is going on-chain, and we’re bringing millions of users with their billions of dollars.” Translation? Coinbase is betting big on DeFi, and it’s betting on you.
A Seamless System for Borrowers and HODLers
This isn’t just another lending option, it’s a full-circle ecosystem powered by Coinbase’s tech stack. When users post BTC as collateral, it’s minted into cbBTC (Coinbase’s wrapped Bitcoin on its Base network). The loans themselves are in USDC (Coinbase’s stablecoin), all facilitated by Morpho, a Coinbase-funded platform, atop Base, Coinbase’s Layer 2 network.
The result? A streamlined, user-friendly borrowing experience designed to help traders and HODLers alike. Whether you’re farming airdrops, funding a risky trade, or putting a down payment on your dream house, this setup has you covered.
Why This Matters
Borrowing against crypto is nothing new, but Coinbase is simplifying the process by integrating it directly into its app. This move lowers barriers to entry, making advanced financial strategies accessible to even casual crypto enthusiasts.
And let’s not forget the strategic genius here, every aspect of this system feeds into Coinbase’s broader ecosystem. From wrapped Bitcoin to stablecoin transactions, Coinbase’s flywheel is in full effect.
