Bitcoin-Backed Lending Is Getting a Fixed-Rate Layer $BTC holders on Coinbase can now borrow USDC without accepting a floating interest rate. The new product uses Morpho Midnight on Base, with both the rate and repayment date fixed when the loan opens — a different structure from Coinbase’s existing variable-rate Morpho Blue loans. That difference changes what the borrower has to manage. With a variable loan, the cost of borrowing can move with market demand. A fixed-term structure removes that uncertainty, although the Bitcoin collateral itself still fluctuates in value. Coinbase’s existing crypto-backed lending business already has $1.4B+ in active loans backed by roughly $3B in collateral. The wider Bitcoin-backed credit market is estimated at around $16B, while a 2026 survey of 1,244 crypto holders in the U.S. and Australia found 88% would consider using crypto-backed credit. The important shift is not simply another loan product. Bitcoin is increasingly being used as collateral for structured credit rather than sold to raise liquidity — and fixed-rate products make that borrowing model look more like conventional lending while keeping the settlement and collateral infrastructure on-chain. #BTC Price Analysis# #BTC #Ad #Coinbase