Coinbase has added fixed-rate borrowing for users who pledge bitcoin and receive USDC. The rate and repayment date are set when the loan begins, unlike the variable-rate loans that dominate onchain lending. Decrypt, CoinDesk, The Block.
The product uses Morpho Midnight for the credit infrastructure and Base for settlement, while Coinbase controls the customer-facing application. It sits alongside Coinbase's existing variable-rate Morpho loans. Fixed terms make the interest cost and maturity easier to model, but they do not make the collateral value fixed.
Bitcoin remains volatile throughout the loan. If the collateral value falls far enough relative to the borrowed amount, liquidation rules can still sell collateral to repay the position. Borrowers therefore need to check the initial loan-to-value ratio, liquidation threshold, maturity date, total repayment amount and any fees shown in their own quote.
The launch is a useful test of whether fixed maturities can make onchain credit easier to understand for mainstream users. It is not the same as an unsecured bank loan, and keeping exposure to bitcoin while borrowing cash adds leverage. The relevant comparison is the full borrowing cost and liquidation risk, not the headline rate alone.