- Coinbase has issued over $1 billion in Bitcoin-backed loans since January.
- U.S. retail users can borrow cash against bitcoin using the on-chain Morpho protocol.
- The average loan size is about $54,000, and the company plans to raise the maximum borrowing limit from $1 million to $5 million.
- Borrowers use these loans for debt consolidation, large expenses, real estate investment, and high-value purchases.
- Billion-dollar lending marks increased acceptance of cryptocurrency as collateral in mainstream finance.
Coinbase announced it has issued more than $1 billion in loans backed by bitcoin since the program started in January. The company offers this service to retail customers in the United States, letting them access cash by putting up their bitcoin as collateral through the on-chain Morpho platform.
The average loan size is close to $54,000, according to a Coinbase spokesperson. The current borrowing limit stands at $1 million, but the company will increase it to $5 million in the coming weeks as more users reach the cap. “We do see some users borrowing up against the current $1 [million] loan limit, and are excited to meet their needs, as well,” the spokesperson said.
The company works closely with the Morpho team to ensure the on-chain loan pool has enough liquidity as the program expands to serve larger customers. Most customers use the loans to pay down debt, cover medical bills or taxes, invest in real estate, or make significant purchases without selling their bitcoin. This approach is similar to how homeowners take loans using property as security or how businesses finance operations by leveraging equipment.
A July report estimated that asset-based lending could grow to $1.3 trillion by 2030, showing that mainstream finance is adopting loans backed by a wider range of assets, including cryptocurrency. By raising its lending ceiling, Coinbase aims to attract wealthier clients looking to tap into the value of their bitcoin holdings.
This milestone points to a steady shift as digital assets like bitcoin become a bigger part of conventional financial practices. For more on Coinbase or Morpho, readers can visit Coinbase or learn about the Morpho protocol through the Morpho platform.
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