Coinbase Introduces ETH-Backed Loans Up to $1 Million

Ben Graham · Novembro 21

Coinbase has expanded its loan lineup with a new option that lets eligible users borrow up to 1 million dollars in USDC by putting their ETH up as collateral. The feature runs through the on‑chain lending protocol Morpho on Base and adds another layer to Coinbase’s growing set of crypto‑collateral products.

How The ETH Loan Works

The offer is available to users in the United States, except for New York residents, and lets them lock up their ETH to receive a USDC loan. The borrowing cap for this product sits at 1 million dollars for ETH‑backed loans, and the position is managed through Morpho’s infrastructure, even though everything appears inside the Coinbase interface.

ETH-backed loans are now on Coinbase.

You can use your ETH as collateral to borrow USDC.

Ethereum. https://t.co/dJAoyIufNH

— Brian Armstrong (@brian_armstrong) November 20, 2025

The user keeps exposure to the price of ETH while getting immediate access to liquidity since there is no need to sell the asset to fund the loan.

A Bigger Step For Asset‑Backed Borrowing

ETH joins Bitcoin as a supported collateral type, widening what users can borrow against on Coinbase. BTC‑backed loans already allowed borrowing up to 1 million dollars, and adding ETH shows that Coinbase is broadening the list of assets that can support larger borrowing needs. Many users prefer holding ETH long term, so having the ability to unlock value without selling it fills a clear gap in the platform’s borrowing tools.

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What Users Need To Watch

Maintaining a healthy collateral ratio is essential because drops in ETH price can trigger liquidation. These products rely on loan‑to‑value metrics, and if the collateral value falls below safe levels, the loan may be closed automatically.

If you believe in somΞTHing, this one's for you.

ETH-backed loans are here.

You can borrow USDC against your Ethereum, unlocking liquidity without selling.

Available now in the U.S. (ex. NY). pic.twitter.com/eOvJ2BWPfr

— Coinbase (@coinbase) November 20, 2025

The limit for ETH loans is fixed at 1 million dollars, while BTC can support a higher ceiling. Interest rates float based on supply and demand within the Morpho protocol. Repayment can happen at any time as long as the user keeps the collateral strong.

Understanding The Risks

Borrowing against ETH leaves the user exposed to the market movements of the asset while also carrying a debt. If ETH falls sharply the collateral buffer shrinks, which can lead to liquidation or penalty fees. The structure gives flexibility because the user does not need to make repayments on a set schedule. Yet the collateral must always remain sufficient to cover the loan. Anyone using this feature must be comfortable handling volatility on the asset side while managing a loan on the liability side.

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How This Fits Into The Market

The introduction of ETH‑backed loans up to 1 million dollars shows that Coinbase is pushing deeper into crypto‑collateral lending. This move targets not only small borrowers but also users with more substantial holdings. As platforms add more collateral options and increase borrowing limits, crypto‑backed financing continues to grow. It is becoming a clearer part of the broader industry.

Morpho’s role underneath the interface shows how established companies are leaning on decentralised protocols. At the same time, they keep the experience accessible to everyday users.

With ETH now included as collateral and a clear borrowing limit in place, the loan product expands how digital assets can be used without forcing users to part with their holdings. It adds another route for accessing liquidity and strengthens the direction of crypto platforms aiming to mirror familiar borrowing models while keeping blockchain assets at the core.

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