Coinbase reports $2.3 billion in crypto-backed loans outstanding on a product that launched in January 2025. Meanwhile, JPMorgan, Citi and BNY are moving bank deposits onto blockchains.
Coinbase now has $2.3 billion in crypto-backed loans outstanding, according to figures the exchange reported as of October 17, 2026. The product launched in January 2025.
How the lending product works
Eligible US users outside New York can post Bitcoin as collateral and borrow USDC, a dollar-pegged stablecoin, without selling their coins. The loans run through Morpho, a decentralized lending protocol, and its Morpho Blue infrastructure on the Base network.
By mid-September 2026, outstanding variable-rate loans alone had passed $1.4 billion, backed by approximately $3 billion in collateral. Then, on September 22, 2026, Coinbase added fixed-rate loans through Morpho Midnight, which lets borrowers lock in costs.
The September figure covered only variable-rate loans, so it is not a perfect like-for-like comparison with the $2.3 billion total.
New collateral and mortgages
Coinbase has also widened what borrowers can pledge. Collateral options now include XRP, DOGE, ADA and LTC, with XRP and others added in August 2026.
Also in August 2026, Coinbase partnered with Better to facilitate crypto-collateralized conforming mortgages under Fannie Mae.
Banks bring deposits on-chain
A tokenized deposit is a regular bank deposit represented on a blockchain, which allows real-time settlement instead of waiting on legacy payment rails. JPMorgan's JPMD tokenized deposit has been operational on Base for institutional use as of mid-2026.
Citi and BNY are also active in tokenized deposit efforts. Several UK banks are planning network launches targeted for 2027.
Source: Crypto Briefing
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