Coinbase users have borrowed more than $2.17 billion against Bitcoin, with more than $1.4 billion in BTC collateral used by over 80,000 people through Morpho-powered markets on Base. The milestone turns Bitcoin-backed borrowing into one of the largest consumer-facing DeFi credit products running through a major centralized exchange interface.
The product gives eligible Coinbase users a way to borrow USDC without selling their Bitcoin exposure. Loan activity runs onchain through Morpho, while Base provides the infrastructure layer behind the lending markets. That setup lets Coinbase package onchain credit inside a familiar account experience while still routing the borrowing logic through DeFi markets.
Coinbase’s loan product supports USDC borrowing through Morpho, with variable interest rates, collateral requirements and liquidation rules tied to the health of each loan. Borrowers keep exposure to their posted collateral, but the position can be liquidated if the collateral value falls far enough against the outstanding USDC balance.
Morpho is the lending layer behind the product, giving Coinbase a way to offer collateralized borrowing without building a closed credit book from scratch. The protocol uses onchain markets where collateral, borrowing demand, rates and liquidation conditions can be handled programmatically.
The Bitcoin collateral side has become the anchor of the integration. More than $1.4 billion of cbBTC has been collateralized on Morpho, making Coinbase’s wrapped Bitcoin product a major source of onchain lending liquidity. That collateral base gives Morpho deeper credit activity, while Coinbase gains a lending product that can expand across supported assets.
The same lending stack has already moved beyond Bitcoin. Coinbase recently added Solana-backed loans as originations topped $2.3 billion, extending the Morpho-on-Base model to more collateral types while keeping USDC as the borrowing asset.
The lending milestone gives Base a large, measurable credit use case tied directly to Coinbase distribution. Onchain borrowing has often struggled to reach mainstream users because it usually requires separate wallets, direct protocol interaction, gas management and manual position monitoring. Coinbase compresses that path into a product already connected to user accounts and collateral balances.
The rollout also strengthens Morpho’s position in institutional and app-level DeFi lending. The protocol recently raised $175 million to build onchain credit infrastructure, with its growth now tied to exchanges, fintech apps and asset managers that want lending rails without rebuilding the full market layer.
Coinbase has also been turning DeFi yield and credit infrastructure into app-native products, including an Ethena-powered Coinbase vault that topped $100 million in deposits. The Bitcoin loan book now stands above $2.17 billion borrowed, with more than $1.4 billion in BTC collateral and over 80,000 users connected to Morpho markets on Base.
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