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.

On September 22, 2026, Coinbase added fixed-rate loans through Morpho Midnight , giving borrowers a way to lock in costs.

About a month later, total crypto-backed loans stood at $2.3 billion. The September figure covered only variable-rate loans, so the two numbers aren’t a perfect like-for-like comparison.

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Coinbase has also widened what borrowers can pledge. Collateral options now include XRP , DOGE, ADA and LTC, with XRP and others added in August 2026.

Coinbase partnered with Better to facilitate crypto-collateralized conforming mortgages under Fannie Mae, also in August 2026.

A tokenized deposit is a regular bank deposit represented on a blockchain, allowing real-time settlement instead of waiting on legacy payment rails.

JPMorgan ’s JPMD tokenized deposit has been operational on Base for institutional use as of mid-2026.

Citi and BNY are also active in tokenized deposit efforts. Several UK banks are planning network launches targeted for 2027, part of a broader push that includes consortium projects across the UK and beyond.