Coinbase Expands Bitcoin-Backed Loans to the United States, Opening Instant Liquidity Without Triggering Taxable Events

Crypto exchange Coinbase (Nasdaq: COIN) announced on social media platform X on April 30 that its bitcoin-backed loan service is now fully available to eligible customers across the United States, excluding New York.

Crypto exchange Coinbase (Nasdaq: COIN) announced on Monday that its bitcoin-backed loan service is now fully available to eligible customers across the United States, excluding New York.

The company stated: "As of April 30, 2025, customers can borrow up to $1M in USDC against their bitcoin to cover any of life’s expenses without selling their bitcoin."

Bitcoin-backed loans are available to all customers in the U.S., excluding New York. We’re also planning to expand BTC-backed loans to more countries.

Customers can borrow up to $1M in USDC against their bitcoin to cover any of life’s expenses without selling their bitcoin. Available now to all eligible customers in the U.S., excluding New York.

— Coinbase (@coinbase) April 30, 2024

The company added that customer demand has been strong with $100 million USDC borrowed in less than 100 days. Borrowers can enjoy rates as low as 5%, which is 2x lower than other crypto-backed loan options, with no hidden fees.

The product provides users with the opportunity to access liquidity without incurring any taxable events. Bitcoin is used as collateral to secure the loan. When a loan is initiated, the bitcoin is automatically converted to cbBTC, Coinbase's wrapped version of bitcoin, and deposited into Morpho. This process facilitates nearly instant disbursement of funds in USDC, and the repayment terms remain open-ended, with no fixed schedule.

Coinbase is highlighting this lending feature as part of a broader onchain financial ecosystem. The company noted the diverse use cases for borrowers.

Whether you want to make a large purchase or cover unexpected expenses, BTC-backed loans give you instant access to the cash you need. Without having to sell your bitcoin.

The exchange's dynamic interest rates are tied to the Morpho protocol's market conditions, aiming to simplify the borrowing process further.

Coinbase is currently unable to offer BTC-backed loans in New York due to regulatory constraints. The company is planning to expand availability to more countries in the future.

Coinbase's initiative to expand its bitcoin-backed loan service underscores the increasing demand for accessible and efficient lending solutions within the cryptocurrency domain. As the company continues to invest in decentralized financial infrastructure, it aims to provide users with greater control over their assets and expand the possibilities for onchain economic activity.