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 Morpho.
Coinbase launches fixed-rate Bitcoin-backed USDC loans
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.
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 collateral and USDC as the borrowed asset.
Morpho described the launch as fixed-rate crypto-backed lending powered by its Midnight protocol, while Coinbase’s loan setup documentation confirms the product choices and borrowing ceiling.
Fixed terms expand Coinbase’s variable-rate loan book
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.
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 January 2025 launch post.
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.
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.
Official Coinbase and Morpho integration graphic for fixed-rate Bitcoin-backed loans. — Source: Morpho
Morpho Midnight supplies the fixed-maturity lending rails
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.
Coinbase’s loan documentation, rather than the Midnight protocol documentation, sets out the consumer terms. Decrypt reported that Coinbase manages the consumer application experience, Morpho supplies the lending infrastructure and Base handles settlement.
Decrypt called the integration the first enterprise-scale deployment of Morpho Midnight. The rollout adds fixed-rate terms to Coinbase’s Bitcoin-backed USDC loan offering alongside its existing variable-rate product.
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.
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