Coinbase brings back Bitcoin-backed loans with Morpho’s DeFi integration

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Key Takeaways

Coinbase’s Bitcoin-backed loans, powered by Morpho, present USDC immediately, leveraging cbBTC for seamless on-chain performance.
This new providing follows Coinbase’s exit from its Borrow program in November 2023, signaling a renewed concentrate on Bitcoin lending.

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Coinbase has launched Bitcoin-backed loans by its partnership with Morpho, a decentralized finance protocol with $3.7 billion in complete worth locked.

This new service permits customers to borrow as much as $100,000 in USDC immediately with out promoting their Bitcoin.

The service represents Coinbase’s return to Bitcoin lending after ending its earlier Borrow program in November 2023, which had supplied money loans backed by BTC holdings.

Users’ Bitcoin collateral is transformed to Coinbase-wrapped Bitcoin (cbBTC) at a 1:1 ratio with out charges and transferred to Morpho. The protocol then sends USDC loans on to customers’ Coinbase accounts in lower than a minute.

The loans require a minimal collateral ratio of 133%, with debtors capable of alter their loan-to-value (LTV) ratio above this threshold.

Collateral is liquidated if the mortgage stability reaches 86% of the collateral’s market worth, triggering reimbursement and penalty charges, with remaining Bitcoin returned to debtors.

Interest charges are set by Morpho and alter routinely with market circumstances, updating each few seconds with every block creation on the Base blockchain.

The service options no minimal funds or fastened due dates, supplied debtors keep acceptable LTV ratios.

The service is on the market throughout the US apart from New York, with Coinbase planning broader enlargement. While presently restricted to Bitcoin collateral, the change plans so as to add assist for different tokens.

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