TL;DR: Bitcoin-backed loans are slowly rolling out over the coming months on Coinbase. Customers can instantly borrow USDC at competitive interest rates with flexible, open-ended repayment terms. Loans are powered by Morpho, an open source lending protocol on Base. Crypto-backed loans will launch with bitcoin as collateral, with plans to add more assets in the future. Loans will be made available to customers starting in the U.S., excluding New York State, with plans to expand to more markets.
Update: As of April 30, 2025, customers can borrow up to $1M in USDC against their Bitcoin to cover any of life’s expenses without selling their bitcoin. Bitcoin-backed loans are available to all customers in the U.S., excluding New York. We’re also planning to expand BTC-backed loans to more countries. Stay tuned.
Getting a bitcoin-backed loan on Coinbase is now easier and faster than ever. In under a minute, you can get a loan in USDC without ever having to sell your bitcoin. You can earn over 4% in USDC rewards, send USDC globally for free, and use it onchain. You can also convert USDC to USD 1:1 for free to cover major expenses like buying a car or making a downpayment on your mortgage. Borrowing against bitcoin instead of selling it, can help delay a tax gain or loss. Crypto-backed loans on Coinbase are powered by Morpho, an onchain lending protocol built on Base, and grant access to competitive interest rates set by Morpho’s onchain open market lending pool. You no longer have to choose between preserving wealth for the future and spending it today.
Crypto-backed loans are another major step towards empowering our customers with greater control over their financial lives. Coinbase customers can now get easier, faster access to everyday financial services, leveraging onchain innovation across Coinbase, Base, and the wider cryptoeconomy. They benefit from the transparent, decentralized services enabled by onchain protocols, which can now be accessed through a more seamless, intuitive user experience on Coinbase.
The launch of Coinbase Wrapped Bitcoin (cbBTC) in September gave our customers the ability to move and use their bitcoin onchain. Now, customers can tap into the benefits of cbBTC without having to leave Coinbase. When you borrow USDC against bitcoin, your collateral is automatically converted to cbBTC (1:1) for free and transferred to the Morpho protocol. Combined with the everyday utility of USDC, crypto-backed loans showcase the power of onchain tech to offer vastly improved financial services.
You can now borrow USDC in under a minute.
To access crypto-backed loans, go to the Cash tab within your Coinbase app, click on Borrow, and enter the amount of USDC you want to borrow against your BTC. To start, you can borrow up to $100,000 USDC depending on how much bitcoin you have to pledge as collateral. This service will be available on the Coinbase app with plans to roll out to the web browser.
Once you confirm the amount, the BTC that you choose to pledge as collateral will be converted to cbBTC and transferred onchain to a Morpho smart contract. Morpho will then disburse the USDC loan, which you will see in your Coinbase account within seconds.
Interest rates are variable and calculated automatically by Morpho based on market conditions – such that it varies every few seconds with each block creation on the Base blockchain.
There is no fixed repayment schedule and users will always have the flexibility to choose when to pay down their loan.
If the amount of your loan, including accrued interest, reaches a certain threshold relative to the value of your collateral, liquidations are triggered. You can monitor your loan directly from your Coinbase app. For more information visit our Help Center.
Learn more about crypto-backed loans at coinbase.com/loans.
Coinbase does not intend for any reward-bearing products described herein, namely USDC, to constitute a securities offering, and purchasing these products is not the same as investing in a securities offering. Coinbase regularly assesses the USDC rewards rate and may make periodic changes. We always aim to offer you our best rate possible at any given time.
The 1-1 USDC-USD conversion feature may not be available to all regions. No commission fees attributed to Coinbase will be charged until further notice. However, spread, and processing fees charged by third party processors, will continue to apply.
USDC is available natively on 10 blockchains: Ethereum, Base, Optimism, Solana, Arbitrum, Polygon, Avalanche, Algorand, Stellar, and Noble. Send any amount of USDC for zero fees on all supported networks except Ethereum.
Note that transfer limits are set on all Coinbase accounts as a financial safeguard to protect you and your account. Learn more.
This material is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations or (iii) an official statement of Coinbase. Consult your advisors before making any investment decision. No representation or warranty is made, expressed or implied with respect to the accuracy of the information or to the future performance of any digital asset, financial instrument or other market or economic measure. Coinbase may have financial interests in, or relationships with, some of the entities and/or publications discussed or referenced in the materials. Coinbase does not endorse or approve links or third-party websites that may be provided in the materials.
We’re partnering with JPMorgan Chase to offer 3 new ways to participate in crypto: the ability to transfer Chase Ultimate Rewards to USDC, the ability to use Chase credit cards to fund your Coinbase account, and a new direct bank integration.
