Midnight

USDC

Morpho

Bitcoin

<p>Coinbase launched fixed-rate USDC loans backed by Bitcoin on September 22, 2026, powered by Morpho Midnight. The product adds a fixed-term, fixed-maturity borrowing option for eligible users alongside Coinbase’s existing variable-rate, open-ended crypto-backed loans, with the interest rate and repayment date set when the loan originates, according to <a href="https://morpho.org/blog/coinbase-launches-fixed-rate-crypto-backed-loans-powered-by-morpho-midnight" rel="noopener noreferrer nofollow">Morpho</a>.</p>
<h2 id="coinbase-launches-fixed-rate-bitcoin-backed-usdc-loans">Coinbase launches fixed-rate Bitcoin-backed USDC loans</h2>
<p>Coinbase’s help documentation says eligible users can choose between variable- and fixed-rate USDC loans. Under the fixed-rate option, borrowers select a fixed term and can borrow up to $5 million.</p>
<p>The fixed-rate structure sets both the interest rate and repayment date at origination, unlike variable-rate borrowing, which does not lock the rate for the loan’s full life. The loans use Bitcoin as <a href="https://cryptodaily.co.uk/glossary/discover-the-role-of-collateral-in-cryptocurrency-and-defi" rel="noopener noreferrer nofollow">collateral</a> and USDC as the borrowed asset.</p>
<p>Morpho described the launch as fixed-rate crypto-backed lending powered by its Midnight protocol, while Coinbase’s <a href="https://help.coinbase.com/en/coinbase/trading-and-funding/loan/loan-setup" rel="noopener noreferrer nofollow">loan setup documentation</a> confirms the product choices and borrowing ceiling.</p>
<h2 id="fixed-terms-expand-coinbase-s-variable-rate-loan-book">Fixed terms expand Coinbase’s variable-rate loan book</h2>
<p>The fixed-rate option arrives alongside a considerably larger variable-rate product. Morpho said Coinbase’s existing variable-rate loans had surpassed $1.4 billion in active loans, backed by roughly $3 billion in collateral, as of the fixed-rate launch announcement.</p>
<p>Coinbase first introduced Bitcoin-backed USDC borrowing through Morpho in January 2025. That initial product offered flexible, open-ended repayment terms and variable-rate borrowing, according to Morpho’s <a href="https://morpho.org/blog/coinbase-launches-crypto-backed-loans-powered-by-morpho" rel="noopener noreferrer nofollow">January 2025 launch post</a>.</p>
<p>The addition therefore changes the range of term structures available rather than replacing the earlier model. Borrowers can now choose between an open-ended variable-rate loan and a fixed-rate loan with a selected term, subject to Coinbase’s eligibility requirements.</p>
<p>Morpho’s figure for active loans and collateral indicates the scale of the pre-existing service, but does not break out activity by borrower type, loan size or collateral ratio. The reported $1.4 billion in active loans applies to the variable-rate offering that remains available alongside the new fixed-rate product.</p>
<p>Official Coinbase and Morpho integration graphic for fixed-rate Bitcoin-backed loans. — Source: <a href="https://morpho.org/blog/coinbase-launches-fixed-rate-crypto-backed-loans-powered-by-morpho-midnight" rel="noopener noreferrer nofollow">Morpho</a></p>
<h2 id="morpho-midnight-supplies-the-fixed-maturity-lending-rails">Morpho Midnight supplies the fixed-maturity lending rails</h2>
<p>Morpho Midnight is a fixed-rate, fixed-maturity protocol whose isolated markets specify the loan tokens, maturities and collateral assets, according to its whitepaper. That distinguishes it from Morpho Blue’s predominantly variable-rate model and matches Coinbase’s format for specifying a borrowed asset, collateral asset and maturity.</p>
<p>Coinbase’s loan documentation, rather than the Midnight protocol documentation, sets out the consumer terms. <a href="https://decrypt.co/379091/borrow-against-bitcoin-fixed-rate-coinbase-morpho" rel="noopener noreferrer nofollow">Decrypt reported</a> that Coinbase manages the consumer application experience, Morpho supplies the lending infrastructure and Base handles settlement.</p>
<p>Decrypt called the integration the first enterprise-scale deployment of Morpho Midnight. The rollout adds fixed-rate terms to Coinbase’s <a href="https://cryptodaily.co.uk/2026/09/aave-bitcoin-backed-institutional-loans-anchorage-custody" rel="noopener noreferrer nofollow">Bitcoin-backed USDC loan offering</a> alongside its existing variable-rate product.</p>
<p>Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p>

Coinbase Adds Fixed-Rate USDC Loans Backed by Bitcoin Through Morpho

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