Coinbase has introduced fixed-rate bitcoin-backed loans powered by Morpho Midnight, allowing users to borrow USDC against their BTC with the interest rate and repayment date set at loan origination.
The new fixed-rate option sits alongside Coinbase's existing variable-rate loans built on Morpho Blue. Coinbase said those variable-rate loans have grown to more than $1.4 billion outstanding, backed by roughly $3 billion in collateral. Across the broader Morpho network, Morpho Blue has $5.2 billion in outstanding loans and $16 billion in deposits, while Midnight currently has around $30 million in deposits during its rollout.
Morpho launched Midnight on Base in July to bring fixed rates and defined loan terms to onchain lending. Coinbase is the first major consumer platform to offer loans through Midnight at scale, according to a Morpho spokesperson. Market makers also use the protocol, and Tenor Labs launched a lending platform using Midnight in July.
Borrowers can select loans due at the end of the current month or the end of the next month, with "End of Month" defined as the last Friday of the month. If a loan goes unpaid by maturity, the lender has a claim on the posted collateral.
Coinbase declined to share specific interest rates, saying rates are set by supply and demand as lenders and borrowers place offers on an onchain order book. "Coinbase Borrow gives our customers access to liquidity without having to sell their assets, and fixed-rate borrowing gives them even greater choice over how they manage that credit," said Jacob Frantz, yield and investments product lead at Coinbase.
Morpho said Midnight could also be used to create structured credit products and loans backed by tokenized real-world assets, with more integrations expected in the future.
