Coinbase launches Bitcoin-backed Loans
cbBTC combined with onchain lending protocol Morpho enable loans
Hi Bitcoin Builders,
This week, Coinbase launched Bitcoin-backed loans. Coinbase’s Bitcoin-backed loans allow users to borrow money using their Bitcoin holdings as collateral. Here's how it works:
Eligibility: Currently available to US customers — users must have Bitcoin in their Coinbase account to use as collateral.
Loan Amount: Users can borrow up to $100,000 in USDC based on the amount of Bitcoin they have available. The loan amount is determined by the collateral value of the Bitcoin.
Collateral: When users initiate a loan, Bitcoin is converted to Coinbase Wrapped BTC (cbBTC) and moved on-chain into a Morpho smart contract where it serves as collateral. Morpho is an open market onchain lending protocol on Base.
Read more here.
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