Coinbase Lets You Borrow $100K in USDC Using SOL as Collateral

by

Coinbase Deepens Onchain Finance Push With <a href="https://bbg-news.com/sol-usd/">SOL</a>-Backed Loans

Key Highlights

  • Users can borrow up to $100,000 in USDC using SOL as collateral through Coinbase’s Morpho-powered system on Base.
  • Coinbase’s crypto-backed lending has surpassed about $2.1–$2.3 billion in total loan originations, with Bitcoin making up the majority share.
  • The rollout expands Coinbase’s lending ecosystem beyond Bitcoin and Ethereum, marking Solana the first additional major Layer 1 supported.

Coinbase now lets eligible U.S. users borrow money using their Solana cryptocurrency as collateral, instead of having to sell it. This is part of Coinbase’s lending service.

The exchange announced on X (formerly Twitter) Tuesday that users can now borrow up to $100,000 in USDC by using their Solana (SOL) as collateral. This is possible through a new lending system built on the Base network, using technology from Morpho.

You can now borrow money on Coinbase using your Solana (SOL) as collateral. Borrow up to $100,000 in USDC instantly without having to sell your SOL.

— Coinbase 🛡️ (@coinbase) May 12, 2026

Coinbase is building on an existing feature for Bitcoin and Ethereum users. Now, instead of selling their cryptocurrency for cash or stablecoins, people can use their crypto as collateral to borrow funds, all while still owning the original tokens.

Coinbase announced that the product is now available to customers in the U.S., except for those in New York state, where certain crypto lending services are still limited.

How the lending system works

Instead of a typical loan process, this system uses smart contracts and decentralized finance technology. Plus, it’s non-custodial, so users maintain complete control of their funds throughout the loan term, directly within the smart contract.

As a researcher tracking the crypto lending space, I’ve been following Coinbase’s progress with their lending product, and it’s been impressive. Since launching last year, it’s seen rapid growth. My data, sourced from Dune Analytics, now shows that Coinbase has originated over $2.12 billion in crypto-backed loans.

Bitcoin continues to dominate the crypto lending market, with approximately $2.17 billion in outstanding loans. Ether follows with around $110 million, and XRP-backed loans total about $31.6 million. Other cryptocurrencies like cbETH, Dogecoin, Cardano, and Litecoin are also being used for loans, though in smaller amounts.

Why it matters

Coinbase has expanded its lending program to include Solana, making it the first major blockchain besides Bitcoin and Ethereum to be offered. Coinbase notes that many users are still interested in borrowing money using their crypto as collateral, rather than selling it.

The company explained that supporting Solana is part of its goal to create a single platform for all crypto activities – allowing customers to buy, sell, lend, store, earn, and transfer digital assets.

Coinbase is releasing this new feature at a difficult time for the company. Recent financial reports showed a loss of $394.1 million for the first quarter, largely due to decreased trading volume. To address this, Coinbase has also announced it will reduce its staff by around 14%, while still focusing investment on artificial intelligence and developing new offerings.

Even with lower profits, Coinbase is still focusing on developing financial services that operate directly on the blockchain. Last month, they also launched their service allowing users to borrow money using their cryptocurrency as collateral in the United Kingdom, as part of a plan to expand internationally.

Read More

2026-05-12 23:42