Major Exchange Rolls Out Million-Dollar ETH Loans As Base Lending Surges

Source: ETHNews Original Title: Coinbase Rolls Out Million-Dollar ETH Loans As Base Lending Surges Original Link: https://www.ethnews.com/coinbase-rolls-out-million-dollar-eth-loans-as-base-lending-surges/

How The New ETH Loans Work

A major compliance-focused exchange is pushing deeper into onchain finance with the launch of Ethereum-backed loans for eligible U.S. customers, a move that lets users borrow up to $1 million in USDC without selling a single unit of ETH. The rollout marks one of the platform’s most significant DeFi-integrated services to date, arriving just weeks after it raised its Bitcoin-backed loan limit to $5 million.

The program is powered by Morpho, a lending protocol operating on Base, the exchange’s own Layer 2 network. The exchange acts as the access point, but the loans themselves are executed entirely through Morpho’s smart contracts, meaning users interact with DeFi liquidity while enjoying a centralized platform’s ease of use.

The offering is available across most of the United States, with the exception of New York due to regulatory restrictions. Users deposit ETH as collateral and receive USDC without triggering a taxable event, a key advantage over selling Ethereum outright. Borrowers must monitor their loan-to-value ratio, as positions are automatically liquidated once they hit 86% LTV, reflecting the inherent volatility of crypto-backed credit.

The platform says the feature will soon expand to include more assets, including cbETH, the staked-ETH derivative, giving users even more flexibility to leverage long-term holdings.

Base Hits New Lending Milestone

The timing of the launch is no coincidence. Onchain lending across the Base ecosystem has now exceeded $1.25 billion, driven by rising activity in both institutional and retail credit markets. Morpho, in particular, has seen significant inflows this week as traders and long-term holders tap collateralized borrowing to unlock liquidity without sacrificing upside exposure.

With the exchange leaning harder into DeFi rails and expanding ways for users to borrow against major cryptocurrencies, the platform is positioning itself at the center of the next phase of crypto-native credit markets.