Coinbase has launched a new borrowing feature allowing eligible US users (excluding New York) to borrow up to US$1 million in USDC against cbETH, its tokenized staked ether.

The loans, facilitated by the on-chain protocol Morpho, are overcollateralized with variable interest rates and no fixed repayment schedule, with a loan-to-value ratio limit of 86 percent to prevent liquidation.

The move aims to increase the utility of staked ether by enabling users to maintain ETH exposure and staking rewards while accessing liquidity for large purchases or rebalancing.

This service reflects growing demand for liquidity options tied to staked assets amid increasing competition among exchanges and DeFi protocols.

🔗 Source: CoinDesk

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