Key Highlights
- Users can borrow up to $100,000 in USDC using SOL as collateral through Coinbase’s Morpho-powered system on Base.
- Coinbase’s crypto-backed lending has surpassed about $2.1–$2.3 billion in total loan originations, with Bitcoin making up the majority share.
- The rollout expands Coinbase’s lending ecosystem beyond Bitcoin and Ethereum, marking Solana the first additional major Layer 1 supported.
Crypto exchange Coinbase has added Solana to its crypto-backed lending service, giving eligible users in the United States a new way to borrow money without selling their crypto.
In a post on X on Tuesday, the exchange said users can now use their SOL holdings as collateral to borrow up to $100,000 in USDC through its onchain lending system, powered by Morpho on the Base network.
The update expands a service Coinbase already offers for Bitcoin and Ether holders. Instead of selling crypto to get cash or stablecoins, users can lock up their assets and borrow against them while still keeping ownership of the tokens.
Coinbase said the product is available to U.S. customers outside New York, where some crypto lending products still face restrictions.
How the lending system works
The lending system operates through smart contracts and decentralized finance infrastructure rather than a traditional lending setup. In addition, the product is non-custodial, meaning users keep control of their assets within the smart contract structure during the loan period.
Coinbase said the product has grown quickly since launching last year. According to data from Dune Analytics, the exchange’s total crypto-backed loan originations have now passed $2.12 billion since last year.
Bitcoin remains the biggest part of the lending business, making up around $2.17 billion in total loans. Ether-backed loans account for about $110 million, while XRP-backed loans have reached roughly $31.6 million. Smaller loan volumes have also come from assets including cbETH, Dogecoin, Cardano, and Litecoin.
Why it matters
The addition of Solana marks the first major Layer 1 blockchain outside Bitcoin and Ethereum to be added to Coinbase’s lending stack. Coinbase said demand for crypto-backed borrowing remains strong as more users look for ways to access funds without selling their digital assets.
The company also linked the Solana rollout to its wider plan of building a platform where customers can trade, borrow, hold, earn, and move crypto assets within one system.
The launch comes during a challenging period for Coinbase. Last week, the company reported a net loss of $394.1 million in its first-quarter earnings as lower trading activity continued to affect revenue. Moreover, the exchange recently announced plans to cut about 14% of its workforce as it adjusts spending and continues investing in AI-focused operations and new products.
Despite the weaker earnings, Coinbase continues pushing deeper into onchain financial services. The company also expanded its crypto-backed lending product into the United Kingdom last month as part of its strategy to go global.
Also Read: Benchmark Raises Coinbase Target to $270 After Weak Q1 Results
