Coinbase reported that its outstanding crypto-backed loans reached $2.3 billion as of October 17, 2026. The lending service, which launched in January 2025, allows eligible US users to borrow USDC stablecoins by pledging assets as collateral.
The lending operations utilize the Morpho decentralized protocol and Morpho Blue infrastructure on the Base network. By mid-September 2026, variable-rate loans exceeded $1.4 billion, supported by approximately $3 billion in collateral. Fixed-rate loans were introduced on September 22, 2026, via Morpho Midnight.
The platform has expanded its collateral options beyond Bitcoin to include XRP, DOGE, ADA, and LTC. Additionally, in August 2026, Coinbase partnered with Better to offer crypto-collateralized mortgages under Fannie Mae guidelines.
Major financial institutions are simultaneously advancing tokenized deposit initiatives. JPMorgan launched its JPMD token on the Base network for institutional clients in mid-2026, while Citi and BNY are also developing similar solutions. Several UK banks are preparing for network launches in 2027.
