Nasdaq-listed exchange Coinbase now allows its users to borrow dollar-pegged stablecoin USDC agains their bitcoin holdings with no surprises on what they’ll pay in interest.
The exchange has rolled out fixed-rate, bitcoin-backed USDC loans, with the interest rate and repayment date set at the time of borrowing, an alternative to the floating-rate loans Coinbase already offers.
“The move takes onchain borrowing beyond the predominantly variable-rate model, giving users greater certainty over the cost and duration of their borrowing,” according to an announcement on Tuesday.
The fixed-rate offering runs on Morpho Midnight, a decentralized, non-custodial lending protocol for fixed-rate and fixed-term crypto loans launched in July this year. It settles transactions on Coinbase’s Ethereum layer 2 network Base.
It marks a meaningful shift from how Coinbase’s lending has worked until now. It’s existing loans run on the…
