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Coinbase has reintroduced Bitcoin-backed loans for US customers, partnering with DeFi lender Morpho to facilitate the service. This initiative marks Coinbase’s second attempt at offering crypto-backed loans, following the discontinuation of a similar program in 2023.
This renewed effort differs significantly from its predecessor, Coinbase Borrow, which allowed customers to borrow up to $1 million against 30% of their Bitcoin holdings but was discontinued in July 2023 after a complaint from the Securities and Exchange Commission (SEC) alleging that Coinbase had operated as an unregistered broker, exchange, and clearing agency. At the time, a Coinbase spokesperson attributed the closure to reduced demand.
However, this revamped program takes a different approach by integrating with Morpho, which currently manages approximately $3.7 billion in deposits. This partnership enables users to access DeFi lending services without the complexities typically associated with decentralized platforms.
Source: fullycrypto.com
