Coinbase introduces USD Coin (USDC) loans utilizing Bitcoin as collateral – CoinJournal

Coinbase introduces USD Coin (USDC) loans utilizing Bitcoin as collateral – CoinJournal

  • Coinbase has launched USDC loans with Bitcoin as collateral.
  • The loans can be found for US prospects.
  • The loans haven’t any fastened compensation and so they auto-adjust primarily based on the actions on Base.

In a transfer to increase its decentralized finance (DeFi) choices, Coinbase has launched a novel service permitting its US prospects (excluding these in New York) to borrow USD Coin (USDC) by leveraging their Bitcoin (BTC) as collateral.

This revolutionary function, introduced in a current replace, goals to supply customers with fast and versatile entry to funds with out the need of promoting their Bitcoin.

The method leverages Coinbase’s cbBTC stablecoin

Customers pledge their Bitcoin (BTC), which is then transformed into cbBTC, a wrapped model of Bitcoin particularly designed by Coinbase to be used in DeFi functions. This conversion permits Bitcoin, which usually operates exterior the DeFi ecosystem as a result of its technical framework, to work together seamlessly with DeFi protocols.

The cbBTC is subsequently despatched to Morpho, a DeFi lending protocol constructed on Coinbase’s Base blockchain. In return, debtors obtain USDC, a stablecoin pegged to the US greenback, which they’ll make the most of for numerous functions reminiscent of protecting bills, worldwide transfers, or conversion into US {dollars}.

The rates of interest on these loans are dynamically adjusted primarily based on market actions on the Base blockchain, reflecting Coinbase’s dedication to aligning DeFi with consumer wants.

Notably, this mortgage service comes at a time when the crypto lending sector has been underneath scrutiny following the high-profile bankruptcies of entities like Celsius and BlockFi in 2022, which considerably dented belief in crypto lending.

By integrating with Morpho, Coinbase is stepping in as a intermediary to probably restore some confidence, providing a clear, good contract-based lending expertise.

No fastened compensation timelines

What units this service aside is the absence of fastened compensation schedules. Debtors have the freedom to repay the mortgage at their very own tempo, so long as the worth of the Bitcoin collateral stays above a sure threshold relative to the mortgage quantity.

Nonetheless, ought to Bitcoin’s worth plummet, the system is designed to mechanically liquidate sufficient collateral to cowl the mortgage, safeguarding the protocol’s integrity.

Some great benefits of such crypto-backed loans are manifold. For one, they permit customers to bypass quick capital beneficial properties taxes by borrowing in opposition to their property reasonably than promoting them. Furthermore, these loans function on blockchain know-how, making certain transparency and effectivity by way of automated processes.

Supply hyperlink

bitcoin
Bitcoin (BTC) $ 95,674.63 1.39%
ethereum
Ethereum (ETH) $ 2,579.72 2.72%
tether
Tether (USDT) $ 1.00 0.00%
xrp
XRP (XRP) $ 2.35 4.03%
solana
Solana (SOL) $ 198.41 1.87%
bnb
BNB (BNB) $ 604.39 1.90%
usd-coin
USDC (USDC) $ 1.00 0.01%
dogecoin
Dogecoin (DOGE) $ 0.243809 4.37%
staked-ether
Lido Staked Ether (STETH) $ 2,579.68 2.51%
cardano
Cardano (ADA) $ 0.670118 4.91%
tron
TRON (TRX) $ 0.228642 1.44%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,420.57 1.30%
chainlink
Chainlink (LINK) $ 17.80 4.00%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,070.06 3.01%
avalanche-2
Avalanche (AVAX) $ 24.27 1.91%
the-open-network
Toncoin (TON) $ 3.77 0.11%
stellar
Stellar (XLM) $ 0.306359 8.01%
leo-token
LEO Token (LEO) $ 9.88 0.61%
sui
Sui (SUI) $ 2.95 5.21%
shiba-inu
Shiba Inu (SHIB) $ 0.000015 4.58%
hedera-hashgraph
Hedera (HBAR) $ 0.227211 3.95%
usds
USDS (USDS) $ 1.00 0.33%
litecoin
Litecoin (LTC) $ 108.45 2.50%
bitget-token
Bitget Token (BGB) $ 6.33 2.32%
hyperliquid
Hyperliquid (HYPE) $ 22.56 4.40%
weth
WETH (WETH) $ 2,578.34 2.72%
polkadot
Polkadot (DOT) $ 4.67 2.06%
bitcoin-cash
Bitcoin Cash (BCH) $ 318.87 1.53%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.03%
mantra-dao
MANTRA (OM) $ 6.11 1.02%
uniswap
Uniswap (UNI) $ 8.89 2.26%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,733.02 2.62%
monero
Monero (XMR) $ 222.60 2.82%
ondo-finance
Ondo (ONDO) $ 1.30 4.10%
whitebit
WhiteBIT Coin (WBT) $ 27.27 0.01%
pepe
Pepe (PEPE) $ 0.000009 3.75%
near
NEAR Protocol (NEAR) $ 3.09 6.81%
aave
Aave (AAVE) $ 236.94 2.70%
dai
Dai (DAI) $ 0.999885 0.03%
mantle
Mantle (MNT) $ 1.01 4.51%
aptos
Aptos (APT) $ 5.77 2.72%
internet-computer
Internet Computer (ICP) $ 6.79 3.30%
susds
sUSDS (SUSDS) $ 1.04 0.01%
official-trump
Official Trump (TRUMP) $ 15.60 10.24%
ethereum-classic
Ethereum Classic (ETC) $ 19.79 2.18%
bittensor
Bittensor (TAO) $ 356.03 0.00%
okb
OKB (OKB) $ 47.01 1.77%
gatechain-token
Gate (GT) $ 21.35 0.02%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.297239 4.31%
vechain
VeChain (VET) $ 0.031318 5.52%
crypto-com-chain
Cronos (CRO) $ 0.091313 4.35%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 95,651.63 1.26%
algorand
Algorand (ALGO) $ 0.271576 2.35%
tokenize-xchange
Tokenize Xchange (TKX) $ 28.08 4.16%
kaspa
Kaspa (KAS) $ 0.085298 2.89%
render-token
Render (RENDER) $ 4.15 3.76%
jupiter-exchange-solana
Jupiter (JUP) $ 0.810598 5.54%
filecoin
Filecoin (FIL) $ 3.24 2.69%
first-digital-usd
First Digital USD (FDUSD) $ 0.993724 0.85%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 0.750838 1.46%
cosmos
Cosmos Hub (ATOM) $ 4.49 1.90%
arbitrum
Arbitrum (ARB) $ 0.440758 3.25%
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 94,759.39 2.47%
fasttoken
Fasttoken (FTN) $ 3.94 0.14%
celestia
Celestia (TIA) $ 3.05 0.49%
binance-staked-sol
Binance Staked SOL (BNSOL) $ 205.31 1.69%
binance-peg-weth
Binance-Peg WETH (WETH) $ 2,577.22 2.66%
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 2,670.33 2.78%
ethena
Ethena (ENA) $ 0.470977 11.11%
solv-btc
Solv Protocol SolvBTC (SOLVBTC) $ 95,408.56 1.21%
kucoin-shares
KuCoin (KCS) $ 12.07 0.62%
optimism
Optimism (OP) $ 1.06 1.06%
xdce-crowd-sale
XDC Network (XDC) $ 0.089913 0.23%
immutable-x
Immutable (IMX) $ 0.793287 2.25%
raydium
Raydium (RAY) $ 4.63 9.07%
blockstack
Stacks (STX) $ 0.889614 0.16%
lido-dao
Lido DAO (LDO) $ 1.48 4.23%
injective-protocol
Injective (INJ) $ 13.54 3.24%
bonk
Bonk (BONK) $ 0.000017 5.78%
rocket-pool-eth
Rocket Pool ETH (RETH) $ 2,893.08 2.57%
nexo
NEXO (NEXO) $ 1.29 2.81%
sonic-3
Sonic (prev. FTM) (S) $ 0.401525 1.97%
theta-token
Theta Network (THETA) $ 1.25 5.85%
the-graph
The Graph (GRT) $ 0.128885 2.02%
mantle-staked-ether
Mantle Staked Ether (METH) $ 2,723.79 2.58%
flare-networks
Flare (FLR) $ 0.020864 2.83%
movement
Movement (MOVE) $ 0.504224 8.64%
worldcoin-wld
Worldcoin (WLD) $ 1.19 5.10%
usual-usd
Usual USD (USD0) $ 0.998361 0.02%
dexe
DeXe (DEXE) $ 19.21 7.22%
jasmycoin
JasmyCoin (JASMY) $ 0.022089 1.71%
solv-protocol-solvbtc-bbn
Solv Protocol SolvBTC.BBN (SOLVBTC.BB) $ 94,597.35 0.51%
msol
Marinade Staked SOL (MSOL) $ 251.03 1.52%
sei-network
Sei (SEI) $ 0.219723 3.32%
gala
GALA (GALA) $ 0.021323 3.84%
the-sandbox
The Sandbox (SAND) $ 0.36686 6.01%
eos
EOS (EOS) $ 0.591862 2.80%
tezos
Tezos (XTZ) $ 0.862035 2.56%
floki
FLOKI (FLOKI) $ 0.000092 2.22%
ultima
Ultima (ULTIMA) $ 19,255.79 1.53%
Scroll to Top