Now, Coinbase is giving US users a new way to use their Ethereum without having to sell it. The company announced that customers can borrow USDC while keeping their ETH locked as collateral.
Borrowing against an asset simply means you use what you own to secure a loan. It offers access to cash while still holding your investment. For many new investors, this can feel like opening a door that was once only available to large traders.
How ETH-Backed Loans Work in Practice
ETH-backed loans are simple once you understand the basics. You deposit your Ethereum into a protected account. Coinbase then allows you to borrow USDC, a stable digital dollar designed to maintain a steady value. You still own your ETH, but you cannot transfer it until you have repaid the loan. Many long-time holders prefer this option because they can keep their ETH in the market while still having funds available for real needs.
A useful example is a small business owner who bought Ethereum during the last market dip. The value of ETH has risen by more than 40% this year, according to recent market reports. Instead of selling to cover a short-term expense, the business owner can borrow USDC against the ETH.
If you believe in somΞTHing, this one’s for you.
ETH-backed loans are here.
You can borrow USDC against your Ethereum, unlocking liquidity without selling.
Available now in the U.S. (ex. NY). pic.twitter.com/eOvJ2BWPfr
— Coinbase 🛡️ (@coinbase) November 20, 2025
The rise of on-chain financial tools has been one of the strongest trends of 2024. Large platforms have been racing to give users more control over their crypto. Coinbase’s entry into the loan space signals that mainstream adoption is taking a step forward. With millions of US users, the company can introduce borrowing tools to people who may not have tried similar services on decentralised platforms.
More About Coinbase
To access crypto-backed loans on Coinbase, you simply open the Cash tab in the app, tap Borrow, and enter how much USDC you want to borrow against your Bitcoin. You can start with up to one hundred thousand USDC, depending on how much BTC you pledge as collateral, and the feature will appear on the app first before expanding to the web.
Powered by @Morpho. Running on @base.
More assets coming soon, including loans against staked ETH (cbETH).
Learn more ↓https://t.co/K9oAK7tMXn
— Coinbase 🛡️ (@coinbase) November 20, 2025
After you confirm the amount, the BTC you choose to lock is converted into cbBTC and sent onchain to a Morpho smart contract, which instantly releases the USDC loan to your Coinbase account. The interest rate changes in real time because Morpho updates it with each new block created on the Base blockchain, and there is no set repayment schedule, giving you complete freedom to pay back the loan whenever it works best for you.
Disclaimer
The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Coinbase Launches ETH Backed Loans for Investor Liquidity appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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