Official announcements from US regulatory bodies or legal filings

Coinbase Relaunches Bitcoin-Backed Loans Up to $100,000 for US Users, Excluding New York, Via Morpho

Jan 16, 2025, 02:51 PM

Coinbase Global Inc. has relaunched Bitcoin-backed loans for its US customers, excluding those in New York, through a partnership with decentralized finance (DeFi) lender Morpho. This move marks a significant integration of DeFi services into Coinbase's platform, allowing users to borrow USDC against their Bitcoin holdings without selling their assets. The loans are facilitated by Morpho, which has $3.7 billion in deposits, and are available through Coinbase's user interface, simplifying access to DeFi for millions of users. This relaunch follows Coinbase's previous crypto-backed loans program, which was discontinued in 2023 due to regulatory concerns and reduced demand. The new offering aims to provide users with liquidity while maintaining ownership of their Bitcoin, with loan amounts capped at $100,000 in USDC. Users must post more Bitcoin than the loan amount as collateral, which is automatically converted to cbBTC, and Morpho will liquidate the collateral if the loan-to-value ratio becomes too high. This development is seen as a step towards bringing more traditional financial services onto the blockchain, with Coinbase positioning itself as a key player in the on-chain economy.