Coinbase crypto-backed loans hit $2.3 billion as banks build tokenized deposits

Coinbase now has $2.3 billion in crypto-backed loans outstanding, according to figures the exchange reported as of October 17, 2026. That is a sizable book for a product that only launched in January 2025.

How Coinbase’s lending product works

Eligible US users outside New York can post Bitcoin as collateral and borrow USDC, a dollar-pegged stablecoin, without selling their coins.

The loans are routed through Morpho, a decentralized lending protocol, and its Morpho Blue infrastructure on the Base network.

By mid-September 2026, outstanding variable-rate loans alone had passed $1.4 billion, backed by approximately $3 billion in collateral.

On September 22, 2026, Coinbase added fixed-rate loans through Morpho Midnight, giving borrowers a way to lock in costs.

About a month later, total crypto-backed loans stood at $2.3 billion. The September figure covered only variable-rate loans, so the two numbers aren’t a perfect like-for-like comparison.

Beyond Bitcoin: new collateral and mortgages

Coinbase has also widened what borrowers can pledge. Collateral options now include XRP, DOGE, ADA and LTC, with XRP and others added in August 2026.

Coinbase partnered with Better to facilitate crypto-collateralized conforming mortgages under Fannie Mae, also in August 2026.

Banks bring deposits on-chain

A tokenized deposit is a regular bank deposit represented on a blockchain, allowing real-time settlement instead of waiting on legacy payment rails.

JPMorgan’s JPMD tokenized deposit has been operational on Base for institutional use as of mid-2026.

Citi and BNY are also active in tokenized deposit efforts. Several UK banks are planning network launches targeted for 2027, part of a broader push that includes consortium projects across the UK and beyond.