Coinbase’s launch of ETH backed loans marks another move in its ongoing push deeper into onchain finance. The feature lets users borrow USDC against their Ethereum without selling it, giving them liquidity while keeping their long-term holdings intact. Coinbase announced the update through its official channels, positioning it as a way for users who “believe in something” to access funds without losing exposure to ETH.

This preface sets the scene for what Coinbase just rolled out and why it matters. The introduction of ETH collateral comes at a moment where the platform has been building momentum across its broader onchain products, and this update extends that strategy. The rollout is currently live for U.S. customers except in New York, with Coinbase noting that more supported assets are already in the pipeline.

Coinbase Rolls Out ETH-Backed Loans Across the U.S.

Coinbase confirmed that users in the United States, excluding New York, can now borrow USDC using Ethereum as collateral. The company highlights this as a practical option for users who want liquidity but prefer to keep their ETH positions untouched. Borrowers receive USDC instantly, and repayment terms remain flexible, similar to the model used for the platform’s earlier bitcoin-backed loans.

The ETH loan system is powered by Morpho, the open-source lending protocol that also drives Coinbase’s onchain credit products. Coinbase notes that loans against staked ETH (cbETH) are on the way, although no timeline has been confirmed yet.

The introduction of ETH as collateral follows Coinbase’s initial rollout of onchain lending earlier this year. In January, the exchange began offering bitcoin-backed loans through Morpho on Base, laying the groundwork for today’s ETH expansion.

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Onchain Data Shows Strong Momentum Across Coinbase Lending Markets

Data from Dune Analytics shows strong participation in Coinbase’s onchain lending ecosystem. Borrow originations have reached more than 1.27 billion dollars all-time, while total collateral supplied across markets stands at roughly 1.38 billion dollars. Active borrowers number above 13,000 wallets, and over 55,000 suppliers have provided liquidity into supported vaults.

The ecosystem’s overall scale is visible across multiple metrics. Coinbase’s wrapped assets, such as cbBTC, hold a market cap of more than 6.3 billion dollars with supply exceeding 69,000 BTC across chains. Available liquidity in combined cbBTC and USDC markets has been consistently tracked, reaching into the tens of millions.

These figures highlight steady usage across Coinbase’s onchain markets, though they reflect cumulative activity rather than the specific impact of today’s ETH announcement. Still, the data helps show where Coinbase’s lending infrastructure currently stands.

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Institutional Confidence Grows as JPMorgan Upgrades Coinbase

Coinbase’s move to add ETH backed loans fits within a larger pattern of continuous product expansion. The exchange has been strengthening its position across multiple verticals, including stablecoins, wrapped assets, and Base-powered infrastructure.

This growing presence has caught the attention of traditional finance as well. JPMorgan recently upgraded Coinbase stock to “overweight”, citing clearer conditions, reduced risk pressure, and new revenue opportunities forming across different parts of the business. The bank’s report signals renewed confidence in Coinbase’s direction, especially as the company gains a stronger role in onchain services and blockchain infrastructure.

Coinbase’s emphasis on open systems also continues to be part of its public messaging. The platform stresses that its loans use Morpho as the underlying protocol and that more collateral options, including staked ETH, are expected in the near future.

Coinbase’s Expanding Onchain Strategy

Coinbase’s ETH backed loans introduce another layer to the company’s onchain finance strategy. The update gives users a way to borrow USDC without selling their Ethereum and builds on the loan products first launched earlier in the year. With growing usage across Coinbase’s lending markets and positive signals from institutions like JPMorgan, the company appears to be positioning itself for broader participation in onchain credit and collateralized lending.