The cryptocurrency exchange Coinbase increased the borrow limit of its bitcoin-backed USDC loans to $1 million, according to a release shared with The Block. By increasing the loan limit, Coinbase aims to accelerate adoption of its onchain loan program, which launched earlier this year and has already grown to see more than $130 million in total onchain loan originations.
Coinbase initially launched bitcoin-backed USDC loans on Jan. 16 through collaboration with the decentralized lending protocol Morpho, The Block previously reported. The exchange pitched these onchain loans, initially capped at $100,000, as a way to provide traditional finance services using blockchain-based tools and a way for users to do more with their bitcoin.
Since launch, over 4,211 wallets have originated loans backed by around $227 million in onchain collateral, a Dune Analytics dashboard shows. Bitcoin-backed loans on Coinbase are available to all users in the United States except those in the state of New York.
The loan program lets users borrow USDC against their bitcoin without having to sell their asset. When someone takes out a bitcoin-backed loan on Coinbase, it’s converted into a Coinbase Wrapped BTC, or cbBTC, and held as collateral on a Morpho smart contract, according to the Coinbase site. The loans can see rates as low as 5%.
The decentralized lending protocol Morpho supports the blockchain networks Ethereum and Base. The platform maintains over $2.76 billion in total value locked, according to the data tracking platform DeFiLlama.
Coinbase is one of the world’s most popular cryptocurrency exchanges. The firm brought in $102.1 billion, or around 7%, of the $1.45 trillion total spot crypto trading volume among centralized exchanges in March, The Block’s Data Dashboard shows.
Bitcoin is trading at around $93,900 at press time, with the asset drawing in $28.7 billion in trading volume in the past 24 hours, The Block’s bitcoin price page.
© 2025 The Block. All Rights Reserved. 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.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
