Coinbase adds ETH-backed loans via Morpho, letting users borrow up to $1 million

Coinbase has expanded its onchain lending product to allow eligible customers to use Ether (ETH) as collateral to borrow up to $1 million in USDC without selling their crypto. This feature is enabled by the Morpho lending protocol operating on the Base network, with Coinbase providing the user interface. This move aligns with a broader trend showing crypto-collateralized lending hitting record highs, with DeFi platforms now accounting for over half of outstanding crypto-backed loans. ETH is the first of several planned collateral assets, aiming to provide liquidity to long-term holders without triggering taxable events. The loans use wrapped ETH (WETH) as collateral initially, with support for staked ETH coming soon. Borrowers can maintain a loan-to-value (LTV) ratio up to 75%, with liquidation occurring at 86%. Interest rates are variable, determined by supply and demand on Morpho, and the loan proceeds cannot be used for trading on Coinbase.

(Source：The Block)