{"id":114661,"date":"2025-11-21T02:25:44","date_gmt":"2025-11-21T02:25:44","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=114661"},"modified":"2025-11-21T02:25:44","modified_gmt":"2025-11-21T02:25:44","slug":"coinbase-introduces-eth-backed-loans-up-to-1-million","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=114661","title":{"rendered":"Coinbase Introduces ETH-Backed Loans Up to $1 Million"},"content":{"rendered":"

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\u2011chain lending protocol Morpho on Base and adds another layer to Coinbase\u2019s growing set of crypto\u2011collateral products.<\/span><\/p>\n

How The ETH Loan Works<\/span><\/h2>\n

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\u2011backed loans, and the position is managed through Morpho\u2019s infrastructure, <\/span>even<\/span> though everything appears inside the Coinbase interface.<\/span><\/p>\n

ETH-backed loans are now on Coinbase.<\/p>\n

You can use your ETH as collateral to borrow USDC.<\/p>\n

Ethereum. https:\/\/t.co\/dJAoyIufNH<\/a><\/p>\n

\u2014 Brian Armstrong (@brian_armstrong) November 20, 2025<\/a><\/p>\n\n

The user <\/span>keeps<\/span> exposure to <\/span>the price of<\/span> ETH while getting immediate access to liquidity <\/span>since<\/span> there is no need to sell the asset to fund the loan.<\/span><\/p>\n

A Bigger Step For Asset\u2011Backed Borrowing<\/span><\/h2>\n

ETH joins Bitcoin as a supported collateral type, widening what users can borrow against on Coinbase. <\/span>BTC\u2011backed loans already allowed borrowing up to 1 million <\/span>dollars<\/span>, and adding ETH shows that Coinbase is broadening the list of assets that can support larger borrowing needs.<\/span> Many users prefer holding ETH long term, so having the ability to unlock value without selling it fills a clear gap in the platform\u2019s borrowing tools.<\/span><\/p>\n

DISCOVER: Best New Cryptocurrencies to Invest in 2025<\/a><\/strong><\/p>\n

What Users Need To Watch<\/span><\/h2>\n

Maintaining a healthy collateral ratio is essential because drops in ETH price can trigger liquidation. These products rely on loan\u2011to\u2011value metrics, and if the collateral value falls below safe <\/span>levels,<\/span> the loan may be closed automatically. <\/span><\/p>\n

If you believe in som\u039eTHing, this one’s for you.<\/p>\n

ETH-backed loans are here.<\/p>\n

You can borrow USDC against your Ethereum, unlocking liquidity without selling.<\/p>\n

Available now in the U.S. (ex. NY). pic.twitter.com\/eOvJ2BWPfr<\/a><\/p>\n

\u2014 Coinbase (@coinbase) November 20, 2025<\/a><\/p>\n\n

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

Understanding The Risks<\/span><\/h2>\n

Borrowing against ETH <\/span>leaves<\/span> the user <\/span>exposed<\/span> to the market movements <\/span>of the asset<\/span> while also <\/span>carrying a<\/span> debt.<\/span> If ETH falls sharply <\/span>the<\/span> 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.<\/span><\/p>\n

DISCOVER: 20+ Next Crypto to Explode in 2025<\/a><\/strong><\/p>\n

How This Fits Into The Market<\/span><\/h2>\n

The introduction of ETH\u2011backed loans up to 1 million dollars shows that Coinbase is pushing deeper into crypto\u2011collateral 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\u2011backed financing continues to grow. It is becoming a clearer part of the broader industry. <\/span><\/p>\n

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