Coinbase crypto-backed loans hit $2.3 billion as banks build tokenized deposits

What happened

That is a sizable book for a product that only launched in January 2025. Advertisement On September 22, 2026, Coinbase added fixed-rate loans through Morpho Midnight , giving borrowers a way to lock in costs. Coinbase is a Bitcoin and cryptocurrency exchange company based in San Francisco.

Collateral options now include XRP , DOGE, ADA and LTC, with XRP and others added in August 2026. Coinbase's crypto-backed loans and banks' tokenized (representing an asset as a tradable entry on a blockchain) deposits signal a shift towards blockchain integration in traditional finance systems.

17, 2026 Coinbase now has $2.3 billion in crypto-backed loans outstanding, according to figures the exchange reported as of October 17, 2026. How Coinbase’s lending product works Eligible US users outside New York can post Bitcoin as collateral and borrow USDC (Circle’s dollar-pegged token) , a dollar-pegged stablecoin (a digital token meant to hold a fixed value, usually one dollar), without selling their coins.

The loans are routed through Morpho , a decentralized lending protocol, and its Morpho Blue infrastructure on the Base network. About a month later, total crypto-backed loans stood at $2.3 billion.

The September figure covered only variable-rate loans, so the two numbers aren’t a perfect like-for-like comparison. The news moving money, markets, and the world—before your day starts.

Join 34,000+ readers across crypto, finance, and policy. Beyond Bitcoin: new collateral and mortgages Coinbase has also widened what borrowers can pledge.