Morpho sees record Bitcoin-backed borrowing on Base markets

Coinbase customers have pushed USDC loans against cbBTC to roughly $1.6 billion, most of them without ever touching a DeFi interface Bitcoin holders on Base are now borrowing about $1.6 billion in USDC against their coins through Morpho . That sum marks a record for the decentralized lending protocol on Coinbase ’s Ethereum Layer 2 network. The twist is who’s doing the borrowing. Much of the activity comes from Coinbase customers who may not realize they’re using DeFi at all. As of mid-October 2026, outstanding USDC loans backed by cbBTC on Morpho’s primary market reached approximately $1.6 billion. cbBTC is a wrapped version of Bitcoin, a token that represents the underlying coin so it can work inside onchain apps.

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