Coinbase has expanded its crypto lending services with fixed-rate Bitcoin-backed loans through Morpho Midnight. According to the press release, the new product lets users borrow USDC while locking in borrowing costs and repayment dates upfront. Consequently, borrowers gain a more predictable way to access liquidity without selling their Bitcoin.
The service adds a fixed-term option to Coinbase’s existing variable-rate lending products. Those loans use Morpho Blue and now exceed $1.4 billion in outstanding balances. They also have roughly $3 billion in collateral, according to Coinbase.
Fixed Rates Bring More Predictability
Morpho launched Midnight on Base in July to support fixed-rate lending. The protocol uses an onchain order book where lenders and borrowers submit offers. Therefore, market supply and demand determine the available borrowing rates.
Coinbase has not disclosed the rates available through the new service. However, borrowers can currently select loans maturing at the end of this month or next month. Coinbase defines month-end maturity as the final Friday of each month.
Morpho Expands Its Lending Infrastructure
Morpho Midnight currently holds about $30 million in deposits as adoption develops. Additionally, Coinbase manages the customer-facing experience while Morpho provides the underlying lending infrastructure.
Borrowers must repay loans before maturity to avoid collateral claims. Moreover, Morpho expects Midnight to support structured credit and tokenized real-world asset lending. This could broaden fixed-term borrowing beyond crypto-backed loans as the platform develops.
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