Coinbase launches ETH-backed loans as onchain lending tops $1.25B

Coinbase just dropped ETH-backed loans for US users — letting you borrow USDC against your Ethereum stash without having to sell. This new play is powered by Morpho and runs on Base, and it's already processing serious volume.

Available across most US states (sorry New York), the product comes with variable rates and the classic liquidation risk when markets go wild. Users can borrow up to $1 million in USDC stablecoin against their ETH collateral.

Coinbase isn't stopping here — they plan to expand to other assets, including loans backed by their staked ETH token, cbETH. More collateral options = more ways to leverage your bag.

This collab with Morpho is building on their September integration that offered users up to 10.8% yield on USDC holdings. Now they're adding borrowing to the mix — complete DeFi suite energy.

According to Dune data that doesn't lie: Coinbase's onchain lending markets have processed over $1.25 billion in loan originations, backed by about $1.37 billion in deposited collateral. There's roughly $810 million in loans outstanding right now, with more than 13,500 wallets holding active borrow positions. That's not small potatoes.

The Trump administration's pro-crypto stance has completely reshaped the US regulatory landscape. With the GENIUS Act establishing clear stablecoin rules back in July, Coinbase has been moving at warp speed — rolling out new products, partnerships, and acquisitions like there's no tomorrow.

In October, Coinbase dropped $375 million to acquire Echo — the platform developed by crypto investor Jordan Fish that lets communities fund early-stage projects and startups. That same month, they announced crypto staking for New York residents (finally) and teamed up with Citigroup to help the bank streamline how clients move money between crypto and traditional currencies.

On November 10, Coinbase unveiled a new platform for initial coin offerings, restoring regulated access to initial token sales for US retail investors for the first time since 2018. They plan to list roughly one sale per month, starting with Monad's token sale.

And just yesterday, tech researcher Jane Manchun Wong leaked that Coinbase is working on a prediction market website that appears to be backed by Kalshi. They're literally building everything.