Coinbase’s Bitcoin Loan Originations Exceed $1B Amid Borrowing Cap Increase
Coinbase's bitcoin-backed loan program has surpassed $1 billion in originations since January.
The program allows U.S. retail customers to borrow cash against their bitcoin holdings via the Morpho platform.
The average loan size is $54,000. Coinbase plans to increase the borrowing cap from $1 million to $5 million shortly.
The service targets users who wish to access cash without selling their bitcoin, similar to tapping into home equity or leveraging equipment for business.
Common uses include debt consolidation, covering large expenses, real estate investment, and high-cost purchases.
The asset-based lending market is projected to reach $1.3 trillion by 2030, showing increasing interest in loans secured by non-traditional assets.
By increasing its loan cap, Coinbase aims to attract wealthier clients and investors with larger bitcoin holdings.
This development underscores crypto's growing integration into traditional financial systems.
