Coinbase Launches Bitcoin-Backed Loans Through DeFi Platform Morpho

The service allows U.S. users, except in New York, to borrow up to $100,000 in USDC using Bitcoin as collateral on Coinbase's Base network.

Coinbase has reintroduced Bitcoin-backed loans nearly two years after halting its Borrow service during a market downturn.
Loans are collateralized at 133% of their value, with no fixed repayment schedule as long as a healthy loan-to-value ratio is maintained.
The new service is integrated into the Coinbase app and powered by Morpho, a decentralized finance platform on Coinbase's Base blockchain.
Borrowers can convert USDC to USD at a 1:1 ratio for expenses like car purchases or mortgage down payments, avoiding taxable Bitcoin sales.
Liquidation warnings will be issued if the loan-to-value ratio approaches 86%, requiring users to add collateral or risk losing Bitcoin holdings.