Coinbase $1B On-Chain Loans, Next Goal $100B

Coinbase $1B on-chain loans, next goal $100B. Coinbase on-chain loans backed by BTC via Morpho are changing traditional financial instruments at a very rapid pace, and ambitions are only growing. CEO Brian Armstrong shared:

"Next goal: $100B in on-chain borrow originations. Hockey stick growth. The on-chain economy is thriving."

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How Did This Become Possible? Architecture and Collateral Flow

To gauge how feasible these ambitions are, let's examine the technical setup that produced these results. In general, Morpho on the Base network processes the issuances, while Coinbase provides the interface and client UX. Coinbase converts the client's Bitcoin 1:1 into Coinbase-wrapped Bitcoin (cbBTC) with no fee, deposits it into Morpho, and credits USDC to the client's account at Coinbase.

You probably already see the most attractive part here – the user keeps exposure to BTC and receives USDC without selling the underlying asset, and shifts settlement and collateralization to the protocol while keeping the familiar front end.

Among other technical features, the loans require over-collateralization with a minimum collateral ratio of 133%. When the debt-to-collateral market value reaches 86%, the platform liquidates the position to repay the obligation and a penalty, then returns the remaining BTC to the client's Coinbase account. Morpho recalculates floating interest rates algorithmically with each Base block, so the borrowing cost can change intraday and requires LTV monitoring as pool load increases. Repayment stays flexible – borrowers face no fixed dates and no minimum payment requirements as long as they maintain LTV, which allows them to adjust the schedule to their own liquidity flows.

Bitcoin as Collateral, Coinbase Instead of a Bank

$1B in on-chain loan originations is impressive and clearly demonstrates the demand for this service. Especially considering that this is done through Coinbase, one of the world's top crypto platforms, it really sets a trend and expands prospects. But this reflects two other key trends today.

First, we see Bitcoin becoming a base asset beyond crypto trading alone, supporting a range of practical use cases, like real estate. Another key trend is the need for lending in more transparent and measurable schemes rather than in traditionally closed financial systems like banks.

This is the transition to Web3, not only technically but ideologically, and more and more platforms and instruments are following this today. Stay tuned for the latest updates and opportunities in the new economy, crypto industry, and blockchain developments.