Coinbase Rolls Out Bitcoin Loans, Aims for $45B Market by 2030

Coinbase has introduced Bitcoin-backed loans. Using the Morpho platform, Coinbase simplifies borrowing for millions of users while allowing them to keep their Bitcoin. Max Branzburg, Coinbase’s Consumer Products head, called this a major step in bringing assets and users on-chain.

Key Features of Coinbase Bitcoin Loans

Borrowers can get up to $100,000 in USDC by pledging Bitcoin as collateral. A minimum collateral ratio of 133% ensures loan stability in unpredictable markets. Liquidation happens if the loan value reaches 86% of the collateral’s market price.

This system removes credit checks by using over-collateralization, speeding up loan approvals. Borrowers enjoy flexibility, with no fixed repayment dates or required minimum payments. 

Morpho adjusts interest rates in real time, creating fairness based on market trends. Transactions happen on Coinbase's Base blockchain, ensuring efficiency and transparency for all participants.

The Growing Demand for Bitcoin-Backed Loans

Bitcoin-backed loans are set to skyrocket from $8.5 billion in 2024 to $45 billion by 2030. Crypto holders can now access liquidity for major purchases like homes or cars without selling assets.

Wealthy investors have long used asset-backed loans to manage cash flow while retaining investments. Coinbase has adapted this strategy for cryptocurrency, benefiting traders and long-term holders alike.

Coinbase’s innovative approach redefines access to liquidity while promoting wider adoption of decentralized finance. By empowering crypto holders, Coinbase positions itself as a leader in the growing world of Bitcoin-backed lending.