Get Up to $1M USDC in Minutes with Bitcoin-Backed Loans

Coinbase has officially rolled out Bitcoin-backed loans to all eligible U.S. users (except New York), making it easier than ever to borrow up to $1M USDC. This means investors can tap into the value of their Bitcoin holdings without letting go of them. Whether traders are managing an emergency, planning a big purchase, or even looking to borrow to buy crypto, this feature gives control without compromise. With $100M USDC already borrowed in under 100 days, users are clearly ready, as the crypto market has risen from mid-April. Crypto market cap is currently at $2.96 trillion, reflecting a slight drop of 0.04%, and several traders wish this number hit $3 trillion. Can the market jump this $3 resistance? Can this loan offer help traders and market development? 

Why This Is a Game-Changer for Bitcoin Holders

For many of us, Bitcoin is more than an investment; it’s a long-term belief in a decentralized future. So selling it for short-term needs can feel like a betrayal of that belief. Coinbase understands this, which is why they’ve introduced Bitcoin-backed loans with flexible terms and no hidden fees. Investors can now borrow a loan to buy crypto or handle unexpected expenses, all while keeping their Bitcoin intact. As of now, the Bitcoin live price is floating around $94,869.32, showcasing its strong position in the market. 

Rates That Beat the Competition

One of the biggest advantages of this program? The incredibly competitive interest rates. With options as low as 5%, Coinbase offers rates nearly half of what other crypto-backed loans demand. This makes it a powerful option for anyone looking to borrow a loan to buy crypto, especially in a volatile market. The process is instant, clean, and transparent, with no surprise fees or complex paperwork. Plus, with $100M USDC already loaned out, it’s clear people trust the system. Individual investors can borrow up to $1M USDC and make the most of the assets without draining their crypto portfolio.

Bitcoin-backed loans are now fully rolled out to all US users (ex. NY). You can instantly borrow up to $1M in USDC on Coinbase. ↓ pic.twitter.com/zvZkxSaKHO

— Coinbase 🛡️ (@coinbase) April 30, 2025

Coinbase in the Front, Morpho in the Back

Crypto enthusiasts are more familiar with “DeFi in the back” in the Coinbase tweet, and there’s a reason for that. While the user-friendly Coinbase interface makes borrowing feel seamless, the system is powered by Morpho Labs on Base, ensuring decentralized finance (DeFi) powers are running behind the scenes. This model raises questions, like: “What if Morpho is hacked?” It’s a fair concern. However, it also points to the bigger conversation about risk and innovation in Web3. Still, for now, this offers an easy, integrated way to ask for loans to buy crypto using Bitcoin that is already owned.

Why Only Bitcoin (For Now)?

A lot of users are wondering why only Bitcoin is used. It’s a valid question. Bitcoin’s large market cap, relatively lower volatility, and strong institutional trust make it an ideal candidate. Its price, currently at a Bitcoin live price high of $95,249.32 and low of $92,979.64 in the past 24 hours, shows just how stable it can be compared to altcoins. As the system proves itself, it’s possible to see Ethereum or other assets integrated. Until then, this allows BTC holders to access liquidity without pressure to sell, which is the perfect way to acquire a loan to buy crypto.

Chart 1- BTC/USDT Live Price, published on TradingView, May 1, 2025.

Looking Ahead: The Future of Borrowing in Web3

Stepping into a future where financial freedom means not needing to sell best-performing assets to access capital. Coinbase’s ability to let investors borrow up to $1M USDC backed by Bitcoin is a great example of blending traditional finance needs with crypto flexibility. With more users choosing to want loans to buy crypto and manage their portfolios dynamically, tools like this are going to become the norm, not a novelty. As innovation continues, expect more lending options, more assets supported, and smoother UX.