Coinbase allows U.S. users to borrow up to $1 million in USDC by using cbETH as collateral

According to CoinDesk, Coinbase has launched a new lending feature for eligible users in the U.S. (excluding New York) that allows users to use their staked Ethereum's tokenized receipt, cbETH, as collateral to borrow up to $1 million in USDC, enabling investors to raise funds without selling or unstaking their ETH.

This feature is powered by the on-chain lending protocol Morpho, offering over-collateralized variable-rate loans with no fixed repayment term. The USDC borrowed can be exchanged for dollars within the platform. This move aims to expand the utility of staked Ethereum, allowing users to gain liquidity while maintaining exposure to ETH price and staking rewards. Users must keep their loan-to-value ratio below 86% to avoid triggering automatic liquidation during market volatility.