Coinbase crypto-backed loans hit $2.3 billion as banks build tokenized deposits

Coinbase now has $2.3 billion in crypto-backed loans outstanding, according to figures the exchange reported as of October 17, 2026. That is a sizable book for a product that only launched in January 2025. How Coinbase’s lending product works Eligible US users outside New York can post Bitcoin as collateral and borrow USDC, a dollar-pegged stablecoin, without selling their coins. The loans are routed through Morpho, a decentralized lending protocol, and its Morpho Blue infrastructure on the Base network. By mid-September 2026, outstanding variable-rate loans alone had passed $1.4 billion, backed by approximately $3 billion in collateral. On September 22, 2026, Coinbase added fixed-rate loans through Morpho Midnight, giving borrowers a way to lock in costs. About a month later, total crypto-backed loans stood at $2.3 billion. The September figure covered only variable-rate loans, so the two numbers aren’t a perfect like-for-like comparison. Beyond Bitcoin: new collateral and mortgages Coinbase has also widened what borrowers can pledge. Collateral options now include XRP, DOGE, ADA and LTC, with XRP and others added in August 2026. Coinbase partnered with Better to facilitate crypto...