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

Coinbase's Bitcoin-backed USDC lending has grown fast since its January 2025 launch, while JPMorgan, Citi and BNY push deposits onto blockchains Coinbase now has $2.3 billion in crypto-backed loans outstanding, according to figures the exchange reported as of October 17, 2026. That is a sizable book for a product that only launched in January 2025. Eligible US users outside New York can post Bitcoin as collateral and borrow USDC , a dollar-pegged stablecoin, without selling their coins. The loans are routed through Morpho , a decentralized lending protocol, and its Morpho Blue infrastructure on the Base network. By mid-September 2026, outstanding variable-rate loans alone had passed $1.4 billion, backed by approximately $3 billion in collateral.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to Crypto Briefing.