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      Morpho Reports Record Bitcoin-Backed Borrowing on Coinbase's Base Markets

      As of mid-October 2026, Morpho has recorded approximately $1.6 billion in USDC loans backed by wrapped Bitcoin (cbBTC) on Coinbase's Base markets. This figure represents a significant milestone for the decentralized lending protocol operating on Coinbase's Ethereum Layer 2 network, with borrowing activity increasing by 55% year-to-date.

      The majority of borrowers are Coinbase customers who may not be fully aware that they are engaging with decentralized finance (DeFi). The flagship cbBTC/USDC market on Base has become the largest segment, holding $3.26 billion in collateral against $1.59 billion borrowed, with a utilization rate of 90.2%.

      Coinbase's introduction of variable-rate USDC loans powered by Morpho in January 2025 has been a key driver of this growth. By September 2026, active borrowing through these loans surpassed $1.4 billion, supported by nearly $3 billion in collateral. The recent addition of fixed-rate loans through Morpho Midnight on September 22, 2026, has further fueled demand as users convert Bitcoin into cbBTC for collateral.

      For Bitcoin holders, this borrowing mechanism offers a way to access liquidity without selling their assets, with borrowing costs decreasing from around 7.5% last year to nearly 5% now. However, the high utilization rate indicates that while lenders are actively earning on their deposits, it may also lead to tighter liquidity conditions in the market. Morpho's growth remains closely tied to Coinbase's continued development of its services on the Base platform.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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