# Coinbase adds fixed-rate USDC loans backed by bitcoin through Morpho

Canonical: https://yielddispatch.com/news/7bfbed33-91ef-44fd-8fdb-861bb255ce9c
Published: 2026-09-24T15:53:54.626Z
Publisher: Yield Dispatch

Eligible users can lock a borrowing rate and repayment date when taking USDC against bitcoin. The collateral can still be liquidated if its value falls.

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](https://decrypt.co/379091/borrow-against-bitcoin-fixed-rate-coinbase-morpho), [CoinDesk](https://www.coindesk.com/markets/2026/09/23/coinbase-users-can-now-borrow-usdc-against-bitcoin-at-a-fixed-rate), [The Block](https://www.theblock.co/news/defi/2026-09-22-coinbase-fixed-rate-bitcoin-loans-morpho-midnight-416050).

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.

## Sources

- [Borrow Against Your Bitcoin at a Fixed Rate: Coinbase Expands Morpho Loans](https://decrypt.co/379091/borrow-against-bitcoin-fixed-rate-coinbase-morpho) — Decrypt
- [Coinbase users can now borrow USDC against bitcoin at a fixed rate](https://www.coindesk.com/markets/2026/09/23/coinbase-users-can-now-borrow-usdc-against-bitcoin-at-a-fixed-rate) — CoinDesk
- [Coinbase adds fixed-rate bitcoin-backed loans through Morpho Midnight](https://www.theblock.co/news/defi/2026-09-22-coinbase-fixed-rate-bitcoin-loans-morpho-midnight-416050) — The Block

- [Editorial policy](https://yielddispatch.com/editorial-policy)
- [Request a correction](https://yielddispatch.com/corrections)