Coinbase Launches ETH-Backed Loans as Onchain Lending Tops $1.25B

Why It Matters

The launch broadens Coinbase’s crypto‑finance offerings, tapping the growing on‑chain lending market and deepening user lock‑up of assets, while signaling the firm’s aggressive push into regulated DeFi products amid a favorable U.S. regulatory environment.

Summary

Coinbase has introduced Ether‑backed loans for U.S. customers, letting users borrow up to $1 million in USDC against their ETH holdings on the Base network, with rates that vary based on market conditions. The product, built with DeFi protocol Morpho, joins a suite of recent Coinbase expansions that include a 10.8% USDC yield, a $375 million acquisition of Echo, and new staking and ICO platforms. On‑chain lending on Coinbase now exceeds $1.25 billion in originations, backed by $1.37 billion of collateral, with roughly $810 million outstanding across more than 13,500 active borrowers. The service is available in most U.S. states except New York, and Coinbase plans to add additional collateral types such as staked Ether.