With a crypto-backed loan, you can borrow USD Coin (USDC) using your crypto assets as collateral. Borrowing is enabled by the Morpho onchain lending protocol on Base. Coinbase provides an interface to access Morpho's protocol.
Benefits | • No credit checks • Collateral-based lending |
Eligibility | • Verified Coinbase customers residing in the US (excluding New York) • Moving to an ineligible location may affect access to existing loans |
Eligible collateral | • Bitcoin (BTC) |
Interest rate | • Variable (depending on supply and demand in the lending market) • Rate shown in product |
Limits | • Borrowing limits are set at the account level, and are determined in part by the amount of Bitcoin you hold |
Repayment | • Loans can be repaid in part or full at any time • No minimum-payment requirements or due dates • Monitor LTV loan health to avoid liquidation risk and penalties |
Requirements | • A passkey is required to establish and manage crypto-backed loans |
Risks | • Crypto/collateral price volatility • Protocol-level security vulnerabilities • Protocol-level liquidity issues |
Taxes | • Maintain detailed transaction records • Consult a tax professional for compliance • Note: Coinbase does not intend to report the wrapping or unwrapping of cbBTC as a taxable event |
Terms | • View Morpho’s terms of service from the loan management page in the Coinbase mobile app |
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