Coinbase expands Morpho lending with fixed rate Bitcoin loans

Coinbase has launched fixed rate crypto backed loans powered by Morpho Midnight, bringing the recently deployed lending protocol to its consumer app. Users can now borrow USDC against Bitcoin with their borrowing rate and repayment date fixed from the outset. The product gives borrowers an alternative to the variable rate loans Coinbase already offers through Morpho. Coinbase said its existing Morpho powered variable rate lending product has grown to more than $1.4 billion in active loans backed by roughly $3 billion of collateral. The new integration expands Coinbase’s existing relationship with Morpho while keeping the user experience within the Coinbase app. Morpho provides the underlying credit infrastructure, while transactions settle on Base. Morpho launched Midnight on Base in July as a noncustodial protocol for fixed rate and fixed term credit. Unlike Morpho Blue, where borrowing rates change according to an interest rate model, Midnight lets rates emerge from market based offers and locks them when a trade is executed. Each Midnight market has a defined maturity date, loan asset and accepted collateral set. Borrowers know their repayment obligation when they enter the posi...