Coinbase has launched Ether-backed lending for US users, allowing customers to borrow USDC against their ETH holdings without selling them. This is a brand new offering powered by Morpho and runs on Base.
The exchange said the product is obtainable in most US states except New York, with rates of interest and liquidation risk tied to market conditions. Users can borrow as much as $1 million value of USDC (USDC) stablecoins.
Source: Coinbase
Coinbase plans to expand this system to other assets, including loans collateralized by its staked Ether (ETH) token cbETH.
The recent product is launched in collaboration with Morpho, a lending protocol for decentralized finance (DeFi). In September, Coinbase integrated Morpho into the Coinbase app, offering users a return of as much as 10.8% on their USDC holdings.
According to Dune data, Coinbase's on-chain lending markets have processed greater than $1.25 billion in lending, backed by roughly $1.37 billion in deposited collateral. There are around $810 million in loans outstanding, with greater than 13,500 wallets holding energetic loan positions.
Coinbase is accelerating expansion
The Trump administration's pro-crypto stance has modified the US regulatory landscape. With the GENIUS Act, which established clear stablecoin rules in July, Coinbase has accelerated its expansion, introducing recent products, partnerships and acquisitions
In October, Coinbase bought Echo for $375 million. Developed by crypto investor Jordan Fish, the platform enables communities to fund early-stage projects and startups.
That same month, the exchange announced cryptocurrency staking for New Yorkers and partnered with Citigroup to assist the bank streamline the best way customers move money between cryptocurrencies and traditional currencies.
On November 10, Coinbase unveiled a brand new Initial Coin Offerings platform, restoring regulated access to initial token sales to U.S. retail investors for the primary time since 2018. The exchange plans to list about one sale monthly, starting with the Monad token sale on Monday.
On Thursday, technology researcher Jane Manchun Wong posted on X that Coinbase is working on a prediction market website and noted that it appears to be backed by Kalshi.
