Coinbase Crypto Lending Surpasses $2.3 Billion

How Coinbase's Lending Product Works

Coinbase's lending product allows eligible US users outside New York to post Bitcoin as collateral and borrow USDC, a dollar-pegged stablecoin, without selling their coins. The loans are routed through Morpho, a decentralized lending protocol, and its Morpho Blue infrastructure on the Base network.

Growth of Crypto-Backed Loans

By mid-September 2026, outstanding variable-rate loans alone had passed $1.4 billion, backed by approximately $3 billion in collateral. This growth is a significant milestone for Coinbase's lending product, which was launched in January 2025.

Tokenized Deposits on Blockchain Platforms

Banks and financial institutions are increasingly exploring tokenized deposits on blockchain platforms. JPMorgan's JPMD tokenized deposit has been operational on Base for institutional use as of mid-2026. Citi and BNY are also active in tokenized deposit efforts.

Expansion of Loan Options

Coinbase has also widened what borrowers can pledge. Collateral options now include XRP, DOGE, ADA, and LTC, with XRP and others added in August 2026.

Mortgage Lending through Coinbase

Coinbase partnered with Better to facilitate crypto-collateralized conforming mortgages under Fannie Mae, also in August 2026.

Banks Bring Deposits on-Chain

A tokenized deposit is a regular bank deposit represented on a blockchain, allowing real-time settlement instead of waiting on legacy payment rails.

Conclusion

Coinbase's growth in crypto-backed loans and its expansion into tokenized deposits demonstrate its commitment to providing innovative financial solutions. As banks and financial institutions continue to explore blockchain technology, Coinbase is well-positioned to capitalize on the growing demand for these services.