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Coinbase Introduces Fixed-Rate Bitcoin Mortgages via Morpho Midnight
Coinbase has launched fixed-rate Bitcoin collateralized loans through its new platform, Morpho Midnight, enabling users to borrow USDC while selecting their interest rates and repayment dates at the time of borrowing. This new offering complements Coinbase's existing floating-rate loans, which are based on Morpho Blue and currently have outstanding loans exceeding $1.4 billion, backed by approximately $3 billion in collateral.
Morpho Midnight was introduced in July on the Base network, providing fixed rates and transparent loan terms for on-chain lending. A representative from Morpho stated that Coinbase is the first major consumer platform to offer these loans on a large scale, with deposits reaching around $30 million since the launch of Midnight. Overall, Morpho Blue has outstanding loans totaling $5.2 billion and deposits of $16 billion across all integrations.
While specific interest rates for the new loans have not been disclosed, a Coinbase spokesperson explained that rates are determined by the supply and demand dynamics within the on-chain order book. Currently, loans are set to mature at the end of the month or the following month, and borrowers must repay before the due date to avoid liquidation of their collateral. Jacob Frantz, Coinbase's head of revenue and investment products, emphasized that this service allows users to access liquidity without needing to sell their assets, while fixed-rate options enhance credit management flexibility.
Morpho has indicated plans to expand the use of Midnight for developing structured credit products and loans secured by tokenized real-world assets, with additional integrations underway. This move marks a significant step in the evolution of on-chain lending and the broader cryptocurrency financial landscape.
Source: KLEA News