Overview
- A loan announced Tuesday, Sept. 22, 2026, lets Coinbase customers lock an interest rate and a short maturity when borrowing USDC against cbBTC collateral.
- Coinbase handles the app experience while Morpho supplies the lending layers—Midnight for fixed‑rate, Blue for variable‑rate—and transactions settle on the Base L2 network.
- The fixed‑rate product sits beside Coinbase’s existing Morpho Blue business, which has more than $1.4 billion in outstanding loans backed by roughly $3 billion in collateral and is part of roughly $3.6 billion of Coinbase collateral deployed on Morpho.
- Morpho Midnight’s liquidity is still small, holding about $30 million in deposits compared with Morpho Blue’s multi‑billion scale, so fixed‑rate markets will need more depth for broad, liquid trading.
- The design gives borrowers predictable costs without selling bitcoin but raises an operational risk because lenders can claim cbBTC if a loan is unpaid at maturity even when the collateral appears healthy.