Coinbase launches fixed-rate Bitcoin mortgage through Morpho Midnight

Coinbase announced the launch of fixed-rate Bitcoin collateralized loans through Morpho Midnight, allowing users to borrow USDC and determine the interest rate and repayment date at the time of borrowing. This new option is alongside Coinbase's existing floating-rate loans (based on Morpho Blue), which have outstanding loans exceeding $1.4 billion, corresponding to collateral of about $3 billion.

Morpho launched Midnight on Base in July, introducing fixed rates and clear loan terms for on-chain lending. A Morpho spokesperson stated that Coinbase is the first mainstream consumer platform to offer Midnight loans on a large scale; since the launch of Midnight, deposits have reached approximately $30 million. The outstanding loans for Morpho Blue across all integrations amount to $5.2 billion, with deposits reaching $16 billion.

A Coinbase spokesperson did not disclose specific interest rates, stating that rates are determined by the supply and demand of both parties on the on-chain order book. Currently, Coinbase offers loans that mature at the end of the month or the end of the following month, and borrowers must repay before the due date; otherwise, lenders have the right to liquidate their collateral. Jacob Frantz, Coinbase's head of revenue and investment products, stated that Coinbase Borrow allows users to gain liquidity without selling assets, and fixed-rate borrowing gives users greater choice in credit management. Morpho indicated that Midnight could also be used in the future to build structured credit products and loans collateralized by tokenized real-world assets, with more integrations in progress.