Coinbase Launches ETH-backed Loans as Onchain Lending Grows

Coinbase has launched Ether-backed loans for US customers, permitting prospects to borrow USDC towards their ETH holdings with out promoting, in a brand new providing powered by Morpho and operating on Base.

The trade mentioned the product is out there throughout most US states, besides New York, with variable charges and liquidation threat tied to market circumstances. Customers can borrow as much as $1 million in USDC (USDC) stablecoin.

Coinbase plans to increase this system to different property, together with loans backed by its staked Ether (ETH) token, cbETH.

The brand new product is being launched in collaboration with Morpho, a decentralized finance (DeFi) lending protocol. In September, Coinbase integrated Morpho into the Coinbase app, providing customers a yield of as much as 10.8% on their USDC holdings.

In line with Dune knowledge, Coinbase’s onchain lending markets have processed greater than $1.25 billion in mortgage originations, backed by about $1.37 billion in deposited collateral. Roughly $810 million in loans is excellent, with greater than 13,500 wallets holding energetic borrow positions. 

Associated: Coinbase to roll out its new ‘DeFi Mullet’ offering in Brazil

Coinbase accelerates growth

The Trump administration’s pro-crypto stance has reshaped the US regulatory panorama. With the GENIUS Act establishing clear stablecoin guidelines in July, Coinbase has accelerated its growth, rolling out new merchandise, partnerships and acquisitions 

In October, Coinbase bought Echo for $375 million. The platform, developed by crypto investor Jordan Fish, permits communities to fund early-stage initiatives and startups. 

That very same month, the trade introduced crypto staking for New York residents and teamed up with Citigroup to assist the financial institution streamline how purchasers transfer cash between crypto and conventional currencies.

On Nov. 10, Coinbase unveiled a new platform for preliminary coin choices, restoring regulated entry to preliminary token gross sales for US retail traders for the primary time since 2018. The trade plans to listing roughly one sale per 30 days, starting with Monad’s token sale on Monday.

On Thursday, tech researcher Jane Manchun Wong posted on X that Coinbase is engaged on a prediction market website, noting that it seems to be backed by Kalshi.

Journal: Good luck suing crypto exchanges, market makers over the flash crash