Coinbase has introduced Ethereum-backed loans, allowing users to borrow up to $1 million in USDC against their ETH holdings. This new feature enables customers to access liquidity without needing to sell their assets, addressing a key need for long-term crypto holders.

The service is currently available to eligible customers in the United States, with the exception of New York. The loans are powered by the Morpho protocol and run on Coinbase's own Layer 2 network, Base. This launch represents a significant expansion of Coinbase's on-chain lending services, which have seen considerable traction.

This follows the success of its Bitcoin-backed loan product, which has facilitated over $1.25 billion in borrowing against $1.38 billion in collateralized BTC from approximately 16,000 customers since its launch earlier this year. Alongside the new ETH product, Coinbase has also increased the borrowing limit for its BTC-backed loans to $5 million. The company announced that loans against staked ETH (cbETH) are also coming soon.

The expansion signals Coinbase's strategy to embed DeFi primitives directly into its core product suite, providing users with more sophisticated financial services. By leveraging external protocols like Morpho and its native Base network, Coinbase is building a more comprehensive and capital-efficient ecosystem for its users.

Get Started: coinbase.com/borrow