Coinbase has rolled out a new service allowing U.S. customers to borrow against their Ethereum (ETH) holdings without needing to sell them. Users can now access loans up to $1 million in USDC, backed by their ETH as collateral. This marks a major move into crypto-backed lending by one of the largest centralized exchanges.
The feature aims to attract long-term ETH holders who prefer to maintain their exposure while unlocking liquidity. It also reduces the need to use third-party lending protocols, offering a streamlined borrowing experience directly through Coinbase.
No Need to Sell Your ETH
With the rise of crypto lending, investors are increasingly looking for ways to leverage their digital assets without triggering taxable events or giving up potential upside. Coinbase’s ETH-backed loans allow users to retain ownership of their Ether, offering a practical financial tool for those needing stablecoin liquidity.
Loan amounts are capped at $1 million per user, and the collateral must meet Coinbase’s required loan-to-value (LTV) ratio. The loans are issued in USDC, a leading regulated stablecoin, ensuring speed and reliability for borrowers.
UPDATE: Coinbase has launched $ETH-backed loans for US users, letting them borrow up to $1M in USDC without selling their Ether as onchain lending on Base tops $1.25B. pic.twitter.com/40Fe0VLsOG
— Cointelegraph (@Cointelegraph) November 20, 2025
Base Lending Surges Past $1.25B
Coinbase’s Layer 2 network, Base, is also seeing rapid growth, with on-chain lending activity surpassing $1.25 billion. This surge reflects growing confidence in Base as a DeFi ecosystem and hints at increasing user appetite for decentralized finance services.
With ETH-backed loans now available and Base gaining momentum, Coinbase is positioning itself as a central hub for both centralized and decentralized crypto finance.