Home
Crypto News
Market
Coinbase Now Enables US Users to Borrow Up to $1M Against Bitcoin Holdings
Coinbase Now Enables US Users to Borrow Up to $1M Against Bitcoin Holdings
May 1, 2025
Coinbase’s Bitcoin-backed lending feature is now available to eligible users across the United States, excluding New York. The exchange made the announcement on April 30 via social platform X. It confirmed that customers can borrow up to $1 million in USDC against their Bitcoin holdings. By allowing users to access liquidity without selling their Bitcoin, the platform aims to offer a flexible solution for both planned and unexpected expenses.
Bitcoin-backed loans are now fully rolled out to all US users (ex. NY). You can instantly borrow up to $1M in USDC on Coinbase. ↓pic.twitter.com/zvZkxSaKHO
— Coinbase ️ (@coinbase) April 30, 2025
Flexible Terms and Instant Access
According to Coinbase, the product allows users to unlock the value of their Bitcoin holdings while avoiding taxable events. Upon initiating a loan, the customer’s Bitcoin is immediately converted into cbBTC, Coinbase’s wrapped version of BTC, which is later deposited into Morpho. Morpho is a decentralized lending protocol deployed on Base, Coinbase’s Ethereum layer-2 network. The requested funds are then released in USDC, providing nearly instant access to capital.
Customers can borrow up to $1 million without fixed repayment schedules, and loan terms remain open-ended. The company emphasized that rates could be as low as 5%, which it reported is about half the cost of similar crypto-backed loan offerings. Since launch, customer demand has resulted in over $100 million in USDC borrowed within the first 100 days. While the current rollout targets U.S. customers outside New York, Coinbase confirmed that it plans to expand the Bitcoin-backed loan offering to international markets.
Bitcoin Yield Fund for Institutions
In parallel with its loan expansion, Coinbase Asset Management also revealed the debut of a new Bitcoin Yield Fund, targeting non-U.S. institutional investors. The fund officially launches on May 1 and seeks to generate annualized net returns between 4% and 8%, payable in Bitcoin. Unlike staking mechanisms used in Ethereum or Solana, the fund will rely on a cash-and-carry trading strategy. This approach takes advantage of pricing gaps between spot Bitcoin and perpetual futures contracts.
This yield opportunity may increase during Bitcoin price surges. However, Coinbase acknowledged that returns could fall—or even turn negative—during periods of price decline. Investors will deposit Bitcoin to participate and can withdraw their holdings monthly. Coinbase and other qualified custodians will hold assets, and the fund will offer a passive way to generate Bitcoin-denominated returns.
Tags
Coinbase News Today
Latest Bitcoin (BTC) News Today
