Key Takeaways
- Coinbase has expanded its presence within the crypto credit score sector with its new ETH-backed loans scheme for eligible US prospects.
- Prospects can borrow as much as $1 million value of USDC by protecting their ETH tokens as collateral.
- This mortgage is for these customers looking for liquidity with out liquidating their crypto belongings for functions like dwelling purchases or debt refinancing.
- The loans are disbursed in USDC. Customers can borrow USDC value as much as $1 million, with preliminary borrowing capability usually as much as a 75% loan-to-value (LTV) ratio.
- You’ll be able to borrow towards their ETH as much as a most loan-to-value ratio (LTV) of 75%, with liquidation set to set off at 86% LTV to handle value volatility threat.
Coinbase has expanded its presence within the crypto credit score sector with its new ETH-backed loans scheme. The scheme is very meant for eligible US prospects. With this mortgage scheme, prospects can borrow as much as $1 million value of USDC by protecting their ETH tokens as collateral.
The loans are operated by Morpho, a decentralized lending protocol on Coinbase’s Layer 2 community known as Base, with Coinbase offering a centralized person interface for the service.
With this new mortgage scheme, Coinbase has solidified its stance as a powerful presence within the DeFi credit score market. This mortgage is geared toward customers looking for liquidity with out liquidating their crypto belongings for functions like dwelling purchases or debt refinancing.
How do ETH-backed Loans on Coinbase Work?
Here’s a step-by-step information on how ETH-backed loans on Coinbase work.
- Eligibility
All eligible US prospects who maintain ETH on Coinbase can apply for this mortgage. Nonetheless, residents of New York aren’t at present eligible to use.
- Collateral
Customers can get the loans by protecting eTH or WETH as collateral. The ETH is transferred on-chain into a wise contract managed by the Morpho lending protocol on Coinbase’s Base Layer 2 community.
- Mortgage Disbursement
The loans are disbursed in USDC. Customers can borrow USDC value as much as $1 million, with preliminary borrowing capability usually as much as a 75% loan-to-value (LTV) ratio.
- Instant Liquidity
After the processing, the mortgage quantity is instantly disbursed into the borrower’s account. Meaning these loans present quick liquidity.
- Curiosity Charges
The rates of interest are unstable and are decided by the availability and demand on the Morpho protocol.
ETH-backed loans are actually on Coinbase.
You should utilize your ETH as collateral to borrow USDC.
Ethereum. https://t.co/dJAoyIufNH
— Brian Armstrong (@brian_armstrong) November 20, 2025
Eligibility Necessities for ETH-backed Loans on Coinbase
To turn into eligible for availing Coinbase’s ETH-backed loans, try to be a US citizen residing wherever aside from New York. Customers should maintain Ethereum (ETH) as collateral. You’ll be able to borrow towards their ETH as much as a most loan-to-value ratio (LTV) of 75%, with liquidation set to set off at 86% LTV to handle value volatility threat. You must also have an account within the Morpho protocol on Coinbase’s Layer 2 community, Base.
The Backside Line
Coinbase’s new enterprise of ETH-backed loans is a step towards making the change a distinguished title within the crypto credit score sector. The change had already began a BTC-backed mortgage program and is planning to roll out such mortgage schemes that includes different cryptocurrencies.
The submit Coinbase Expands Crypto Credit score with New ETH-backed Loans appeared first on BiteMyCoin.
