Coinbase launched Bitcoin-backed loans in all 50 states in the U.S., giving users access to low-interest rates and large amounts of borrowing power. The crypto exchange now allows users, excluding those in New York, to borrow up to $1 million in USDC instantly. Supported by core developer MorphoLabs and built on Base, this offering ensures a smooth user experience on multiple levels.
Coinbase provides fairly attractive rates, beginning as low as 5% on these Bitcoin collateralized loans. That’s a rate of roughly half the cost of similar crypto-backed loans available on other centralized platforms. Those loans typically have interest rates between 10-12%. The Federal Savings Bank describes that its loan alternative has a zero-Fee Guarantee.
Less than 100 days in, it’s been adopted significantly already – over $100 million USDC borrowed already. This shows there’s a clear demand for accessible, affordable crypto-backed loans. This rapid uptake of the loan program underscores its attractiveness to users looking for liquidity while retaining their Bitcoin assets and future value.
At the same time, Bitwise CIO Matt Hougan has been arguing that the traditional four-year Bitcoin cycle is changing. He thinks the current cycle will last “much longer” than normal, for a variety of reasons. No small part of the answer lies in the maturing nature of the crypto market.
High level of participation from institutional investors Another critical factor keeping this cycle longer than average. Regulatory clarity, along with increasing interest from some of the largest asset managers in the world, continues to define a new market dynamic today. All of these factors together indicate a more sustainable and longer-term market cycle.
