Coinbase is bringing back its Bitcoin-based lending service for US users through Morpho, DL News reports.
Accordingly, Coinbase users will now be able to borrow directly from the exchange by using their Bitcoin as collateral.
Coinbase will launch this service in May 2023
The new Bitcoin-backed loans will be available to customers in the United States, excluding New York state, and will be available in additional regions over time.
Coinbase said the new BTC-backed loans are different from previous ones in that Coinbase does not back the loans itself, but instead is backed by Morpho, a DeFi lending protocol with $3.7 billion in deposits.
Paul Frambot, CEO and co-founder of Morpho, told DL News:
“Morpho allows companies like Coinbase to maintain full control over the products they produce, while also removing the need to cede control or governance to third parties like DAOs.”
Coinbase Vice President of Product Max Branzburg explained in a statement that users borrow USDC in exchange for Bitcoin, and their collateral is automatically converted to cbBTC and transferred to the Morpho protocol.
CbBTC is a DeFi-compatible version of Bitcoin issued by Coinbase.
*This is not investment advice.
