Coinbase Launches Lending Feature with Ethereum Support
- Coinbase’s new feature allows USDC loans against staked Ether.
- LTV ratio stands at 86% to prevent liquidations.
- Available in most US states, excluding New York.
Coinbase has introduced a new Ethereum lending feature, allowing U.S. users, except those in New York, to borrow up to $1 million against their staked Ether using cbETH.
Users can access liquidity without unstaking Ether, reflecting Coinbase’s continued expansion in DeFi and meeting growing demand for flexible cryptocurrency lending solutions.
Coinbase Launches Lending Feature with Ethereum Support
Coinbase has launched a new lending feature allowing users to borrow up to $1 million in USDC against staked Ether. This move enables users to access liquidity without unstaking or selling their Ethereum holdings, enhancing financial flexibility.
The feature utilizes Morpho protocol, ensuring decentralized and overcollateralized loans. Users enjoying the benefits retain their staking rewards while benefiting from increased liquidity. This service excludes New York and is limited in the UK.
The launch impacts users aiming to leverage their staked Ether without selling assets. It broadens access to liquid capital while retaining investments, crucial amidst the current market variability observed in Ethereum’s price movements.
This feature reflects financial innovation, improving liquidity management. By allowing loans with an 86% loan-to-value ratio, users are shielded from unexpected liquidations despite market swings, showing dynamic adaptability in response to market demands.
The initiative reflects Coinbase’s continuous advancements in the crypto financial space, reinforcing its position. Brian Armstrong, CEO of Coinbase, stated, “It felt inherently unjust to me that one banking industry could engage in regulatory capture to stifle its competitors. There should be a level playing field for competition, and I genuinely believe that.”
The influence extends beyond financial instruments, potentially altering regulatory landscapes. By offering this novel lending product, Coinbase could advocate for further regulatory clarity and technological evolution, fostering broader acceptance of crypto-backed financial services.
