USDC loans - Introduction

Our team is working hard to bring Bitcoin-backed loans to all US customers (excluding NY). We're on track to making this feature available soon, and we encourage you to keep an eye out for it in your mobile app. Please check back regularly or stay tuned for updates via email.

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

• Coinbase Smart Wallet 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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