Coinbase Launches Fixed Rate Bitcoin-Backed Loans Via Morpho Midnight

Coinbase has introduced fixed rate bitcoin backed loans through Morpho Midnight, giving users the ability to borrow USDC with a set interest rate and repayment date determined upfront at the time of borrowing.

New Option Joins Existing Variable-Rate Loans

The fixed rate feature adds to Coinbase’s current variable rate lending product, which uses the Morpho Blue protocol and has grown to more than $1.4 billion in outstanding loans backed by roughly $3 billion in collateral. Users can now choose between fixed and variable rate options depending on their borrowing needs. Morpho Midnight, which launched on the Base network in July, was built specifically to bring fixed rates and defined loan terms to onchain lending, an area that has traditionally relied on variable rates.

How The Lending Model Works

Coinbase is now the first major consumer platform offering loans through Midnight at meaningful scale, according to Morpho. Interest rates are determined through an onchain order book where lenders and borrowers submit competing offers, rather than being fixed by Coinbase directly. Loans currently mature at the end of the current or following month, with unpaid loans giving lenders a claim over the borrower’s posted collateral.

Broader Lending Network Continues Growing

Midnight has attracted around $30 million in deposits since its rollout, while Morpho Blue holds $5.2 billion in outstanding loans and $16 billion in deposits across its full network. Morpho said the underlying technology could eventually support structured credit products and loans backed by tokenized real-world assets, with more platform integrations expected in the future.