Coinbase Bitcoin Loans Exceed $1 Billion as BTC-Backed Lending Cap Increases to $5M

Coinbase (COIN) has announced its Bitcoin-backed lending program surpassed $1 billion in originations since January launch, demonstrating rising cryptocurrency collateral demand. The exchange currently enables U.S. retail customers to borrow cash against Bitcoin (BTC) holdings through Morpho's on-chain platform. Average loan size stands at $54,000, with plans to increase borrowing limits from $1 million to $5 million in coming weeks. "We're excited to serve users borrowing at current limits," a spokesperson noted, confirming collaboration with Morpho to maintain protocol liquidity during expansion. This BTC-backed loan product allows customers to access cash without selling Bitcoin, similar to home equity loans or business equipment financing. Primary use cases include debt consolidation, major unexpected expenses, real estate investments, and luxury purchases. The development aligns with asset-based lending industry growth, projected to reach $1.3 trillion by 2030. By raising limits, Coinbase targets wealthier clients seeking larger Bitcoin-collateralized loans, accelerating crypto integration into mainstream finance.