Coinbase Launches $1M ETH-Backed Loans via Morpho Protocol

Coinbase expands its lending offerings with a new service allowing users to borrow up to $1 million in USDC using Ethereum (ETH) as collateral. This follows the success of its Bitcoin-backed loan program, which has facilitated over $1.25 billion in loans for over 16,000 customers. The on-chain ETH lending platform leverages the Morpho protocol on the Base network and allows users to access liquidity without triggering taxable events (LTV rates up to 75%). Coinbase’s expansion reflects a growing trend in on-chain credit markets, where crypto-collateralized loans reached $73.6 billion in the third quarter, representing more than half of DeFi platforms.