Coinbase adds fixed-rate Bitcoin-backed loans via Morpho Midnight

Coinbase has launched fixed rate crypto backed loans powered by Morpho Midnight, bringing the recently deployed lending protocol to its consumer app.

Users can now borrow USDC against Bitcoin with their borrowing rate and repayment date fixed from the outset. The product gives borrowers an alternative to the variable rate loans Coinbase already offers through Morpho.

Coinbase said its existing Morpho powered variable rate lending product has grown to more than $1.4 billion in active loans backed by roughly $3 billion of collateral.

The new integration expands Coinbase’s existing relationship with Morpho while keeping the user experience within the Coinbase app. Morpho provides the underlying credit infrastructure, while transactions settle on Base.

Morpho launched Midnight on Base in July as a noncustodial protocol for fixed rate and fixed term credit. Unlike Morpho Blue, where borrowing rates change according to an interest rate model, Midnight lets rates emerge from market based offers and locks them when a trade is executed.

Each Midnight market has a defined maturity date, loan asset and accepted collateral set. Borrowers know their repayment obligation when they enter the position, while lenders know the return they are targeting.

The launch marks the first enterprise scale integration of Midnight shortly after its deployment and builds on Coinbase’s broader use of Morpho for onchain lending. Coinbase originally introduced Morpho powered Bitcoin backed USDC loans in January 2025.

While the Coinbase integration initially focuses on Bitcoin backed borrowing, Midnight is designed to support additional collateral types, including tokenized securities and other real world assets.