Coinbase has introduced a fixed-rate lending option that allows users to borrow USDC against their Bitcoin, with the interest rate and repayment date established when the loan is created.

The Nasdaq-listed exchange said the product is designed to give borrowers more certainty than its existing floating-rate loans, where interest costs can change as market conditions shift.

The new loans are built on Morpho Midnight, a decentralized, non-custodial lending protocol for fixed-rate and fixed-term crypto credit that launched in July. Transactions are settled through Base, Coinbase’s Ethereum layer-2 network.

Coinbase’s existing Bitcoin-backed loans operate through Morpho Blue, where rates fluctuate based on supply and demand. Borrowing costs can increase when demand for credit rises. That variable-rate product currently has more than $1.4 billion in active loans backed by almost $3 billion in collateral.

The fixed-rate service now sits alongside the floating-rate option, giving borrowers an alternative with predetermined financing costs and maturity dates.

Fixed-rate Bitcoin-backed lending is not a new concept. Companies such as Ledn and SATL Lending have offered similar products for years. Coinbase’s offering combines fixed-rate borrowing with onchain settlement, DeFi infrastructure and access through a mainstream consumer crypto platform.

Morpho co-founder and CEO Paul Frambot said the partnership with Coinbase is moving into a new phase focused on expanding the products already developed by the two companies.

Frambot said the next stage will involve scaling the platform through additional loan types and use cases, with the broader goal of bringing onchain credit closer to the size and diversity of traditional lending markets.

The Bitcoin-backed credit market is currently estimated at around $16 billion, according to the Bitcoin Digital Credit Report from Apyx and BitcoinTreasuries.net. Some estimates project the market could grow to $130 billion by 2030 as preferred-equity structures expand.

Interest in crypto-backed borrowing also appears significant. Protocol Theory surveyed 1,244 cryptocurrency holders in the U.S. and Australia between February and March 2026 and found that 88% said they would consider taking out a crypto-backed loan or credit product.

Coinbase’s new offering gives Bitcoin holders another route to USDC liquidity while providing a fixed borrowing cost and predetermined repayment date.