Coinbase has officially announced the availability of its new ETH-backed loans for eligible users in the United States, integrating decentralized technology into its centralized offering. The platform confirmed that this product allows customers to obtain immediate liquidity in USDC without needing to sell their crypto assets, although the service currently excludes New York residents due to specific local regulations.
This financial tool operates on the Base network and is powered by the integration with Morpho, a high-capital efficiency DeFi lending protocol. Users can access credit lines of up to $1 million in the stablecoin USDC, with service terms that include variable rates dynamically adjusted to the market. Furthermore, there are liquidation risks linked to volatility, which requires active management by the borrower to maintain position health, thus avoiding automatic losses of their collateral.
Recent data extracted from the analytics platform Dune reveals that Coinbase’s on-chain lending markets have processed impressive figures very quickly. Specifically, more than $1.25 billion in loan originations backed by digital collateral have been recorded, demonstrating significant latent demand for leveraged liquidity in the sector. Currently, nearly $810 million remains outstanding, while more than 13,500 wallets hold active debt positions in the system right now, underscoring the rapid adoption of the product among advanced users.
Will DeFi integration redefine crypto banking in the United States?
This strategic launch occurs amidst a regulatory transformation accelerated by the Trump administration’s favorable stance and the recent GENIUS Act. Coinbase has leveraged this environment to accelerate its expansion through new products, strategic partnerships, and key acquisitions, seeking to consolidate itself as the definitive bridge between traditional and digital finance. On the other hand, in October the company acquired the platform Echo for $375 million, allowing communities to directly fund startups and early-stage projects, effectively democratizing access to venture capital.
Concurrently, the firm announced the enabling of cryptocurrency staking for New York residents and a partnership with Citigroup to streamline institutional payments. On November 10, Coinbase unveiled a new platform for initial coin offerings, restoring regulated access to token sales for US retail investors, something not seen in the market since the year 2018. Likewise, researcher Jane Manchun Wong revealed that the company is working on a decentralized prediction market website, possibly backed by Kalshi’s infrastructure, diversifying its catalog.
The market is watching closely to see if these initiatives will manage to capture the expected institutional capital flow in the company’s coming fiscal quarters. The combination of secure custody and on-chain yields could be the catalyst needed to attract large volumes of fiat money to the digital asset ecosystem. Finally, Coinbase’s ability to navigate this new landscape will define its success, as the company builds an ecosystem that transcends simple trading to offer next-generation banking services, establishing a new standard for global centralized exchanges.
