Coinbase (COIN) said its bitcoin-backed loan program has surpassed $1 billion in originations since launching in January, underscoring growing demand for crypto as collateral.
The exchange currently offers retail customers in the U.S. the ability to borrow cash against BTC$113,828.84 holdings through the on-chain Morpho platform. A spokesperson said the average loan size sits at $54,000 but noted the firm plans to raise its borrowing cap from $1 million to $5 million in the coming weeks.
“We do see some users borrowing up against the current $1 [million] loan limit, and are excited to meet their needs, as well,” the spokesperson said. “We work closely with the Morpho team to ensure that we maintain steady liquidity in the onchain loan protocol as we roll out to more customers with larger loans.”
The product caters to customers looking to access cash without selling their bitcoin, a use case that mirrors how homeowners tap equity or how businesses leverage equipment. Coinbase said top applications include debt consolidation, covering large unexpected expenses such as medical bills or taxes, investing in real estate, and making high-cost purchases.
The move comes as the asset-based lending industry continues to expand. A July report projected the market could reach $1.3 trillion by 2030, reflecting broader interest in loans secured by assets beyond traditional real estate or vehicles.
By pushing the ceiling higher, Coinbase is positioning itself to serve wealthier clients and investors who may want to borrow against larger bitcoin holdings.
The milestone highlights the steady integration of crypto into conventional financial practices.