“Users can now borrow up to $100,000 in USDC using Bitcoin as collateral,” announced Coinbase, introducing a new service in partnership with Morpho Labs. This service operates on the Ethereum layer-2 network Base and is available to all U.S. residents except those in New York.

The service automatically converts Bitcoin into Coinbase Wrapped Bitcoin (cbBTC), fully backed by the original cryptocurrency. The management of loan terms and interest rates is handled by Morpho, one of the largest decentralized platforms.

According to Coinbase, the new service provides users with liquidity without the need to sell their Bitcoin and face tax consequences. “This is a step toward increasing the utility of Bitcoin within the decentralized ecosystem,” emphasized Max Branzburg, Vice President of Coinbase.

According to HFT Market Intelligence, the crypto lending market is growing rapidly and is projected to reach $45 billion by 2030.