Morpho records $1.6 billion of Bitcoin-backed borrowing on Base
Bitcoin-backed USDC loans on Morpho's Base markets reached about $1.6 billion, a record for the protocol, Crypto Briefing reports. Coinbase is the main driver.
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what happened
According to Crypto Briefing, Bitcoin holders on Base have borrowed roughly $1.6 billion in USDC against their coins through Morpho. That is a record for the decentralized lending protocol on Coinbase's Layer 2 network. Much of the activity comes from Coinbase customers, many of whom may not realize they are using DeFi.
As of October 19, 2026, the flagship cbBTC/USDC market on Base held $3.26 billion in collateral against $1.59 billion borrowed, with utilization at 90.2%. Rates fell from about 7.5% to near 5%. Coinbase launched variable-rate USDC loans in January 2025 and added fixed-rate loans through Morpho Midnight on September 22, 2026.
why it matters
For the market, this signals growing demand for loans backed by BTC without selling the coins. High utilization means nearly the whole pool is lent out, so liquidity could tighten if many lenders withdraw at once. Morpho's Base growth depends heavily on how Coinbase keeps building its front end.
market impact
BTC and USDC: rising Bitcoin-backed borrowing increases demand for USDC liquidity in DeFi
tags
instruments
sources
- Morpho sees record Bitcoin-backed borrowing on Base markets — Crypto Briefing, 19 October 2026 at 16:03 UTC
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