Coinbase now supports users to borrow at a fixed rate of interest staking Bitcoin USDC

The NASDAQ-listed crypto exchange Coinbase (COIN, current price $198.72) recently opened a new feature to users: they can borrow the US dollar pegged stablecoin with their holdings of Bitcoin ( BTC , current value $86,165.19) as collateral.

Fixed interest rates and repayment dates are determined at the time of borrowing

According to the announcement made by Coinbase on Tuesday, this is a fixed-rate mortgage product with Bitcoin as collateral. Users can lock interest rates and repayment dates at the time of borrowing, which complements the floating rate loans previously offered by the platform, giving users an alternative option.

The announcement reads: "This move frees on-chain from a floating-rate model of lending, giving users greater certainty about borrowing costs and loan terms".

Based on the Morpho Midnight protocol, settlement takes place over the Base network

The fixed-rate service runs on top of the Morpho Midnight protocol. decentralized is an unmanaged crypto lending protocol that focuses on fixed rate and term loans, which was launched in July this year. Transactions are settled through Coinbase 's Ethereum Base.

Running alongside existing floating rate loans

This update marks a significant shift in the Coinbase lending business. The platform's existing loan service is based on Morpho Blue protocol, with interest rates fluctuating as market supply and demand changes, which can be accompanied by higher interest rates when borrowing demand surges. Currently, this set of floating-rate products has more than $1.4 billion in active loans against nearly $3 billion in mortgages.