Coinbase launches fixed-rate USDC loans backed by Bitcoin via Morpho Midnight
- —Loans are issued in USDC on Base; BTC is converted to cbBTC and locked in a smart contract
- —Repayment is due the last Friday of the current or next month, and early repayment does not cut interest
- —An LTV above 86% triggers automatic liquidation and a penalty
- —Coinbase does not publish a rate table; pricing depends on Morpho market conditions
Why it matters: The product gives BTC holders liquidity without selling, but short maturities and liquidation risk during price drops limit its practical use.
Source: DiarioBitcoin