Borrow against your bitcoin without selling it
Get instant loans in USDC while continuing to hold your crypto. Loans powered by Morpho.
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The service will be rolling out progressively. Check your Coinbase mobile app to see if its available to you.
Borrowing made simple
Borrow USDC against your bitcoin in under a minute. Loans are powered by Morpho, an open source lending protocol on Base.
You no longer have to choose between selling your bitcoin today and holding it for the future. You can cover major expenses like making a down payment on your mortgage.
You decide when to pay down your loan - there is no payment deadline or fixed monthly payments.
Interest rates are variable and adjusts based on market conditions on Morpho.
How borrowing works
Borrow up to $100,000 USDC. How much you’re able to borrow depends on the amount of bitcoin you have available for collateral. Available in the U.S. to start, excluding New York State.
USDC will be deposited into your Coinbase account and the chosen amount of bitcoin will be moved onchain to Morpho as collateral.
There are no repayment schedules or deadlines. Your loan to value ratio must remain under 86% to avoid triggering an automatic liquidation to repay the loan and cover a penalty fee.
Do more with USDC, the world's preferred stablecoin
USDC is redeemable 1:1 for the US dollar and used in more than 190 countries. 1:1 USDC-USD trades are free on Coinbase.
USDC has market-leading rewards rates. There are no maximum limits or lock up periods. And Coinbase One members get boosted rates.
All of Coinbase’s USD order books are accessible using USDC. If you can trade it in USD, you can trade it in USDC on both Coinbase and Coinbase Advanced.
You can also send USDC on major networks like Base, Optimism, Arbitrum, Solana, Polygon, and more.
More about Morpho
Morpho is an open market onchain lending protocol on Base, that has undergone substantial third party auditing over time. When you borrow a loan using Coinbase’s integration with Morpho, your BTC is converted to Coinbase Wrapped BTC (cbBTC) and transferred to a Morpho smart contract where it is held as collateral. Loans are sourced and managed permissionlessly on the Morpho protocol.
FAQs
What are Crypto-backed loans?
With a crypto-backed loan, you can borrow USDC using your crypto on Coinbase as collateral. Borrowing is enabled by the Morpho onchain lending protocol on Base. Coinbase provides an interface to access Morpho's protocol.
Can I borrow against other assets, other than Bitcoin?
At launch, you can borrow against bitcoin only but we have plans to rollout out support for more collateral assets.
What is the borrow limit?
At launch, you can borrow up to $100K USDC, depending on how much Bitcoin you have to pledge as collateral. Note that transfer limits are set on all Coinbase accounts as a financial safeguard to protect you and your account. Learn more.
What is Loan-to-Value (LTV) ratio and how does it impact my loan?
LTV is the ratio of the total outstanding amount of your loan (including principal and all accrued and unpaid interest) to the current market value of your collateral.
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For example: If you have $100K worth of BTC and you borrow $50K of USDC, your initial LTV is 50%. If your LTV reaches 86%, either due to a drop in Bitcoin's price or an increase in the amount of your loan due to accrued interest, your collateral will be at risk for liquidation to repay the loan plus a penalty fee of 4.38% from Morpho.
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You can visit this page to learn more about Loan Health and LTV levels, and how they’re used to calculate the liquidation levels for Bitcoin-backed Loans.
How does collateralization work?
When you start the process of obtaining a loan through our integration with Morpho, you will need to create a smart wallet to transact onchain. The BTC that you’re required to pledge as collateral will be withdrawn from your Coinbase account, converted to cbBTC, and transferred onchain into a Morpho smart contract.
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In order to ensure healthy loans, if the outstanding amount of your loan (including accrued interest) reaches 86% of the market value of the collateral provided, the collateral will be liquidated to repay the loan and cover a penalty fee. After the required amount of collateral has been liquidated, the remaining BTC will be withdrawn from Morpho and deposited back into your Coinbase account. Be sure to monitor the status of your loan regularly, as Coinbase cannot prevent your collateral from being liquidated on Morpho.
How are interest rates calculated?
Interest rates are variable and calculated automatically by Morpho based on market conditions – such that it varies every few seconds with each block creation on the Base blockchain. To learn more about how interest rates are set visit Morpho's website.
Are there any Coinbase fees?
There are no Coinbase fees. You only pay the variable interest rate set by open lending markets on Morpho.
How do I repay my loan?
You can repay your crypto-backed loan at any time in full or in part. There are no due dates or minimum payments, but interest continues to accrue on your outstanding loan balance. Be sure to monitor loan health regularly to make sure your collateral does not get liquidated. See our Help Center for more details on how to repay your loan.
Where are crypto-backed loans available?
At launch, crypto-backed loans are available in the United States, (excluding NY), with plans to roll out to other markets. For the latest list of available regions, see our Help Center.
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Disclaimer
Coinbase does not intend for the reward-bearing products described herein to constitute a securities offering, and purchasing these products is not the same as investing in a securities offering. Coinbase regularly assesses the rate and may make periodic changes. We always aim to offer you our best rate possible at any given time.
The 1-1 USDC-USD conversion feature may not be available to all regions. No commission fees attributed to Coinbase will be charged until further notice. However, spread, and processing fees charged by third party processors, will continue to apply.
USDC is available natively on 10 blockchains: Ethereum, Base, Optimism, Solana, Arbitrum, Polygon, Avalanche, Algorand, Stellar, and Noble. Send any amount of USDC for zero fees on all supported networks except Ethereum.
Note that transfer limits are set on all Coinbase accounts as a financial safeguard to protect you and your account. Learn more.
This material is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations or (iii) an official statement of Coinbase. Consult your advisors before making any investment decision. No representation or warranty is made, expressed or implied with respect to the accuracy of the information or to the future performance of any digital asset, financial instrument or other market or economic measure. Coinbase may have financial interests in, or relationships with, some of the entities and/or publications discussed or referenced in the materials. Coinbase does not endorse or approve links or third-party websites that may be provided in the materials.