Coinbase has teamed up with decentralized finance protocol Morpho to revolutionize cryptocurrency lending, launching a new service that enables users to secure up to $100,000 in USDC loans instantly, without selling their Bitcoin. This initiative not only marks Coinbase’s re-entry into the Bitcoin lending arena but also leverages Morpho’s substantial $3.7 billion in total value locked, enhancing financial accessibility for crypto holders.

The process is streamlined for user convenience: Bitcoin deposited as collateral is transformed into Coinbase-wrapped Bitcoin (cbBTC) and then transferred to Morpho, which disburses USDC loans directly to users’ accounts in under a minute. With no fees for conversion and a minimum collateral ratio of 133%, the service offers flexibility and quick access to funds, maintaining a competitive edge with real-time interest rates adjusted by Morpho.

Expanding across the United States, except for New York, Coinbase has plans for wider service availability and the inclusion of additional cryptocurrencies. This strategic move underscores Coinbase’s commitment to expanding financial options for cryptocurrency users, promoting a more integrated and user-friendly approach to digital asset management.