Crypto exchange Coinbase joins forces with Morpho: Borrow USDC with Bitcoin stake

Coinbase joins hands with Morpho to launch a Bitcoin mortgage lending service, allowing you to easily obtain a USDC loan without selling Bitcoin! This innovative service is now available in the United States (except New York State) and will cover more regions in the future.

Fast USDC loan without selling Bitcoin

Coinbase's new feature makes Bitcoin collateralized lending more convenient than ever. In less than a minute, you can get a USDC loan through the Coinbase platform while retaining your Bitcoin assets. The loaned USDC can not only earn more than 4%, but can also be used for global remittances, blockchain transactions, and even directly exchanged into US dollars for daily consumption, such as paying for a car purchase or a down payment for a house. More importantly, this move can effectively avoid capital gains tax or loss reporting obligations arising from the sale of cryptocurrencies.

This service is based on the Morpho lending protocol on the Base blockchain, and interest rates are adjusted in real time based on market dynamics, ensuring you obtain competitive lending conditions. Currently, only Bitcoin is supported as a collateral asset, but Coinbase plans to add more digital asset options in the future.

Coinbase and Morpho: Promoting Decentralized Finance

Coinbase's move is an important strategy to promote the decentralization of personal finance. Through deep integration with Base blockchain and crypto economy, Coinbase is committed to providing users with more convenient and transparent financial services. Compared with traditional financial institutions, this blockchain-based lending service has higher transparency and lower friction costs.

cbBTC: Expand Bitcoin on-chain applications

As early as September 2023, Coinbase launched Coinbase Wrapped Bitcoin (cbBTC) opened a new situation for Bitcoin's on-chain applications. The launch of the lending function further expands the application scenarios of cbBTC. When you use Bitcoin to lend, Coinbase automatically converts your Bitcoin into cbBTC in a 1:1 ratio and transfers it to the Morpho protocol as collateral, thereby improving the on-chain utility of Bitcoin and giving you more flexible financial planning capabilities.

How to apply for a Bitcoin mortgage?

The operation is simple and fast, the whole process takes only a few minutes:

1. Open the Coinbase App, go to the "Cash" tab, and click the "Loan" button.
2. Enter the amount of USDC you wish to borrow (up to USDC 100,000, depending on your Bitcoin holdings).
3. After confirmation, your Bitcoin will be automatically exchanged for cbBTC and transferred to the Morpho smart contract.
4. You will receive a USDC loan immediately in your Coinbase account.

Interest rates are dynamically adjusted by the Morpho protocol according to the Base blockchain market conditions and are updated in real time. Repayment is flexible, and you can choose the repayment time and frequency independently. Please note that when the total loan amount (including interest) reaches a certain proportion, the system will start the liquidation process. You can monitor your loan status in real time through the Coinbase App to avoid risks.

The future prospects of crypto asset lending

Coinbase's Bitcoin collateral lending feature demonstrates the huge potential of blockchain technology in the financial field. It allows users to balance wealth appreciation with current consumer demand. With the increasing popularity of crypto lending services, Coinbase will continue to strive to provide global users with more efficient and secure financial tools to promote the thriving crypto economy.

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