New Offering Powered by Morpho on Base
Coinbase has launched Ether-backed loans for US users, allowing customers to borrow USDC against their ETH holdings without selling. This new offering is powered by Morpho and runs on the Base blockchain.
The exchange stated that the product is available across most US states, with the exception of New York. The loans feature variable rates and carry liquidation risk tied to market conditions. Users are able to borrow up to $1 million in the USDC stablecoin.
Coinbase has plans to expand this program to include loans backed by other assets, such as its staked Ether (ETH) token, cbETH.
This new product is being launched in collaboration with Morpho, a decentralized finance (DeFi) lending protocol. In September, Coinbase integrated Morpho into the Coinbase app, which provided users with a yield of up to 10.8% on their USDC holdings.
Onchain Lending Market Performance
According to data from Dune, Coinbase's onchain lending markets have processed over $1.25 billion in loan originations. This has been supported by approximately $1.37 billion in deposited collateral. Currently, there is about $810 million in loans outstanding, with more than 13,500 wallets holding active borrow positions.
Coinbase Accelerates Expansion
The regulatory landscape in the US has been significantly influenced by a pro-crypto stance. With the GENIUS Act establishing clear rules for stablecoins in July, Coinbase has accelerated its expansion through new products, partnerships, and acquisitions.
In October, Coinbase acquired Echo for $375 million. This platform, developed by crypto investor Jordan Fish, is designed to enable communities to fund early-stage projects and startups.
During the same month, the exchange announced crypto staking services for New York residents and partnered with Citigroup to assist the bank in streamlining how clients transfer money between crypto and traditional currencies.
On November 10, Coinbase unveiled a new platform for initial coin offerings, reintroducing regulated access to initial token sales for US retail investors for the first time since 2018. The exchange intends to list approximately one sale per month, beginning with Monad's token sale.
On Thursday, tech researcher Jane Manchun Wong shared on X that Coinbase is developing a prediction market website, which appears to be backed by Kalshi.