Coinbase has incorporated fixed-rate, bitcoin-secured loans through Morpho Midnight, enabling clients to acquire USDC loans featuring an interest rate and maturity date locked in at origination.
This fresh alternative runs parallel to Coinbase’s existing variable-rate loans, which leverage Morpho Blue. Those specific loans have scaled past $1.4 billion in active balances, secured by roughly $3 billion in assets, according to Coinbase. Consequently, Coinbase customers now possess the option to select between fixed-interest and variable-interest onchain credit.
Morpho introduced Midnight on Base back in July to establish fixed rates and predetermined loan schedules within decentralized lending ecosystems, where borrowing costs have traditionally floated.
Coinbase’s use of Morpho Midnight
As a Morpho representative informed The Block, Coinbase stands as the initial large-scale consumer application to provide loans powered by Midnight. Market makers also interact with the protocol, and Tenor Labs debuted a borrowing platform utilizing Midnight during July, the representative mentioned.
Midnight currently holds roughly $30 million in capital during its deployment phase, based on statements from the representative. Meanwhile, Morpho Blue, the firm’s floating-rate system, maintains $5.2 billion in active borrowings alongside $16 billion in total deposits across all connected applications, the representative noted. These statistics reflect the broader ecosystem of Morpho rather than exclusively Coinbase.
A representative for Coinbase opted not to disclose the specific borrowing costs presented to users utilizing Midnight. These rates are determined dynamically by market supply and demand as capital providers and credit seekers submit bids on an onchain matching book, the representative stated.
At present, Coinbase supplies loans expiring either at the conclusion of the current month or the close of the subsequent month. The term “End of Month” refers specifically to the final Friday of that calendar month, according to the representative. Borrowers are obligated to settle their balances prior to the expiration deadline; should a loan remain unsettled, the lender acquires rights to the posted collateral, they added.
“Coinbase Borrow grants our users liquidity without forcing them to liquidate their holdings, and fixed-rate borrowing delivers even broader flexibility regarding how they handle that debt,” remarked Jacob Frantz, who serves as product lead for yield and investments at Coinbase, in a published announcement.
Coinbase oversees the user interface, Morpho supplies the underlying credit infrastructure, and all operations clear on Base.
Morpho indicated that Midnight can additionally facilitate the development of structured credit instruments as well as financing secured by tokenized traditional assets. These represent viable applications for the network, the Morpho representative shared. Additional partnerships are anticipated, though the representative declined to disclose specific company names or a schedule.
Originally published at https://www.theblock.co/news/defi/2026-09-22-coinbase-fixed-rate-bitcoin-loans-morpho-midnight-416050.
