Coinbase adds fixed-rate Bitcoin-backed loans via Morpho Midnight

Coinbase is rolling out fixed-rate, fixed-term Bitcoin-backed loans through Morpho Midnight, letting US users borrow USDC with interest rates and repayment dates that don’t move once the deal is struck.

The product is available to Coinbase users across the US, with the notable exception of New York. Users post Bitcoin as collateral and receive USDC at a rate that stays constant through a predetermined maturity date.

From variable to fixed: the Morpho evolution

This isn’t Coinbase’s first dance with Morpho’s lending infrastructure. The exchange launched its original BTC-backed USDC loan product on January 16, 2025, built on Morpho Blue, Morpho’s variable-rate lending protocol. That initial product has scaled considerably, accumulating over $1.4 billion in outstanding loans backed by roughly $3 billion in collateral.

Morpho Midnight’s whitepaper dropped in May 2026, with the public launch following on Base in July 2026. Its core pitch is straightforward: bring the predictability of a traditional term loan to blockchain rails, where borrowers can negotiate rates and terms directly rather than watching them fluctuate with market conditions.

Morpho Midnight currently holds around $30 million in total deposits, a fraction of the billions flowing through Morpho Blue. Having Coinbase as its first major consumer-facing distribution channel changes the growth calculus significantly.

Why fixed rates matter in crypto lending

Fixed-rate lending gives borrowers certainty about what they owe and when it’s due. For the borrower who wants to access liquidity against their Bitcoin holdings without selling, a locked rate with a set maturity date transforms a position into something closer to a conventional credit facility.

Competitive implications and what comes next

The $1.4 billion in outstanding variable-rate loans through Morpho Blue provides a useful benchmark for gauging potential demand. If even a modest percentage of those borrowers prefer rate certainty, the fixed-rate product could scale quickly from Midnight’s current $30 million deposit base.

For Morpho, the partnership validates Midnight as more than a whitepaper exercise. Having Coinbase as a launch partner provides immediate distribution and the kind of volume that stress-tests a protocol far more effectively than organic DeFi growth alone.

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