TL;DR: The first enterprise-scale integration of Morpho Midnight expands onchain borrowing to fixed rates, bringing predictable credit to Coinbase users at scale.

Coinbase has launched fixed-rate loans powered by Morpho Midnight.

The launch marks the first enterprise-scale integration of Morpho Midnight, shortly after the protocol deployment, bringing fixed-rate onchain credit directly to users through the Coinbase app. Coinbase users can now borrow USDC against their BTC, with their borrowing rate and repayment date fixed from the outset. The move takes onchain borrowing beyond the predominantly variable-rate model, giving users greater certainty over the cost and duration of their borrowing.

The new product sits alongside Coinbase’s existing Morpho-powered variable-rate loans, which have grown to more than $1.4 billion in active loans backed by approximately $3 billion of collateral. Users can now choose between the flexibility of variable-rate borrowing and the predictability of a fixed rate and defined maturity.

This integration expands Coinbase’s existing use of Morpho. Coinbase retains control of the user experience, while Morpho provides the underlying credit infrastructure and Base acts as the settlement layer.

Fixed rates and defined maturities are fundamental to how credit markets work, and bringing them to a user base at Coinbase’s scale is an important step for onchain lending, which has so far run mostly on variable rates. Just as significant is how quickly Coinbase was able to build on Midnight. It shows that fintechs can use open infrastructure to launch sophisticated credit products without having to recreate the underlying credit stack themselves.

For Coinbase, the launch builds on what Coinbase Borrow already does: give users access to liquidity without having to sell their assets. Fixed rates and defined maturities now sit alongside the existing variable-rate offering, so users can choose the structure that best fits how they want to manage that credit, while continuing to access borrowing directly through Coinbase.

Morpho Midnight enables lenders and borrowers to set defined rates and maturities, with loans executed onchain through market-based pricing. While this integration starts with bitcoin-backed lending, the protocol is designed to support a broader range assets beyond just crypto, including tokenized stocks and other tokenized real-world assets.