Coinbase launches ETH-backed loans as onchain lending tops $1.25B
Overview
Coinbase has introduced a new lending feature allowing users to borrow up to $1 million in USDC using their Ether as collateral. This development comes as part of the expansion of Coinbase’s Base-powered network, which has seen significant activity in the on-chain lending space.
What Happened
Coinbase’s new offering enables users to leverage their Ether holdings for loans, providing a way to access liquidity without needing to sell their assets. The Base-powered network, which underpins this lending feature, has already facilitated over $1.25 billion in loans, indicating a robust demand for such financial services within the crypto ecosystem.
This expansion reflects Coinbase’s commitment to enhancing its services and tapping into the growing trend of decentralized finance (DeFi), where users can engage in lending and borrowing directly on the blockchain.
Impact on the crypto market
- The introduction of ETH-backed loans by Coinbase could attract more users to the platform, increasing overall engagement.
- The substantial volume of loans processed by the Base-powered network highlights the growing interest and trust in on-chain lending solutions.
- This move may encourage other platforms to explore similar lending features, fostering competition in the crypto lending space.
- The ability to borrow against Ether may lead to increased liquidity in the market, potentially influencing trading behaviors.
- Coinbase’s initiative could further legitimize the use of cryptocurrencies as collateral in financial applications.
Updated: 11/20/2025, 7:19:07 PM
