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Coinbase Launches Bitcoin-backed Loans Through Morpho
In a groundbreaking move, Coinbase has relaunched its Bitcoin-backed loan program for US customers through DeFi protocol Morpho. This revamped initiative aims to provide users with seamless access to decentralized finance (DeFi) services through its platform.
The newly introduced service is distinct from Coinbase Borrow, which allowed customers to borrow up to $1 million against 30% of their Bitcoin holdings before being discontinued in July 2023 following regulatory concerns. However, this collaboration marks a significant departure from the past as it eliminates the need for users to relinquish control or governance to third parties like DAOs.
Paul Frambot, CEO and co-founder of Morpho, emphasized the benefits of this partnership with Coinbase, stating that Morpho empowers companies to maintain full control over the products they build. Additionally, it eliminates the requirement to surrender control or governance to third parties, such as DAOs. This approach enables Coinbase to offer loan services without directly facilitating them, thereby reducing potential regulatory risks.
The introduction of this new service aims to capitalize on the growing demand for DeFi lending solutions while addressing previous challenges faced by Coinbase Borrow. By integrating with Morpho, Coinbase will enable users to access DeFi lending services without being overwhelmed by the complexities typically associated with decentralized platforms.
Source: fullycrypto.com
