Coinbase Relaunches Bitcoin-Backed Loans in the United States
Coinbase has relaunched Bitcoin-backed loans in the United States, allowing users to borrow against their Bitcoin holdings. The service is not available to New York residents and offers U.S. account holders access to loans up to $100,000 in USD Coin (USDC) using Bitcoin as collateral.
Key details include:
- Partnership with Morpho Labs for lending management on Coinbase's Ethereum layer-2 network.
- Loans are accessible without direct issuance by Coinbase; customers benefit from competitive interest rates and flexible repayment terms.
- No Coinbase fees or credit checks required.
This is Coinbase's second attempt at Bitcoin lending, following the discontinuation of its previous Borrow program in November 2023.
Bitcoin-backed loans provide liquidity to holders without necessitating the sale of their assets, helping avoid tax implications. The market for these loans is projected to grow from $8.5 billion in 2024 to $45 billion by 2030, attracting traditional financial institutions to the crypto lending sector.
Coinbase’s re-entry into this market reflects the rising integration of digital assets into mainstream finance and the increasing demand for blockchain-driven financial solutions.