Coinbase has surpassed $1 billion in bitcoin-backed onchain loans through Morpho, increasing the borrowing cap from $1 million to $5 million for users, as of October 2025.
The expansion highlights increased institutional demand for DeFi services, influencing Bitcoin's role as collateral and underscoring Coinbase's strategic positioning in centralized and decentralized finance integration.
Coinbase has accomplished a milestone by originating over $1 billion in bitcoin-backed loans through the integration with Morpho, a decentralized lending protocol. This milestone reflects ongoing demand for on-chain lending solutions in the cryptocurrency industry.
Increased Borrowing Cap
The program enables users to leverage their Bitcoin holdings without needing to sell, targeting individuals seeking liquidity. Coinbase plans to raise the single-user borrowing cap from $1 million to $5 million, catering to a wealthier clientele. According to Emilie Choi, President, Coinbase, “By increasing the borrowing cap to $5 million, we are positioning Coinbase to better serve high‑net‑worth individuals and institutional clients.” source
Impact on the Crypto Industry
Coinbase's decision to increase borrowing limits could significantly affect the retail cryptocurrency industry by attracting more high‑net‑worth individuals. The partnership with Morpho enhances institutional trust in decentralized finance solutions.
This expansion indicates potential financial implications for retail borrowers and indicates a growing investment in the DeFi sector. It positions Bitcoin as a more productive financial asset in personal finance strategies.
DeFi Sector and Regulatory Considerations
The rise in demand for such loan products could impact the stability of the Morpho protocol and other DeFi lending platforms as regulatory scrutiny may increase. However, Coinbase's compliance focus might aid regulatory acceptance.
Future financial and technological outcomes might include increased loan originations and greater adoption of DeFi products. Historical trends point to greater demand for stablecoin lending as collateral assets rise, reflecting a shift in traditional finance perceptions.