Coinbase BTC-backed USDC loans top $2.3B on Morpho-fueled growth

Coinbase’s outstanding balance of Bitcoin-backed USDC loans reached $2.3 billion as of Oct. 17, following the product’s launch in January 2025. The service lets users borrow USDC by posting Bitcoin as collateral without selling their BTC. It runs on infrastructure from Morpho, a decentralized lending protocol on the Base network, and loan demand surged after fixed-rate loans through Morpho Midnight were added in September.