Coinbase Introduces Ethereum-Backed Loans, Expanding DeFi Options for U.S. Clients

Coinbase has launched a new service allowing eligible U.S. clients (excluding New York) to borrow up to $1 million in USDC using Ethereum as collateral. This innovative feature offers increased liquidity options for users, who can now access funds without selling their ETH holdings. The platform leverages Morpho’s Base Ethereum Layer 2 network and utilizes USDC to maintain on-chain Ethereum collateral through smart contracts. Coinbase CEO Brian Armstrong highlighted the service’s launch via Twitter.