In an announcement on X, Coinbase unveiled the rollout of their new program to US clients excluding New York, enabling users to borrow USDC using their Bitcoin as collateral. In a statement, Coinbase highlighted the innovation: “Bitcoin-backed loans are here. Borrow USDC against bitcoin, without selling it. Rolling out to US users (excluding NY) starting now. More collateral assets and regions to come. Powered by MorphoLabs and built on Base. The future of finance is onchain.”
This borrowing option offers versatility for users, who can earn over 4% in USDC rewards, send USDC globally free of charge, and utilize it for various onchain activities. Coinbase emphasized the practical applications of this feature, such as converting USDC to USD for car purchases or mortgage down payments.
Furthermore, customers can maintain their Bitcoin investments, which delays potential tax implications from profits or losses.
Coinbase’s dedication to offering consumers onchain financial tools was underscored in a blog post accompanying the announcement. Coinbase aims to create a future where blockchain technology and traditional banking coexist seamlessly by introducing forward-thinking solutions like Bitcoin-backed loans.
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