Coinbase crypto-backed loans hit $2.3B with staked ETH and SOL

Coinbase's crypto-backed lending product has reached $2.3 billion in cumulative originations, accepting staked ETH and SOL as collateral for US borrowers.

"The next phase of crypto lending is about letting users keep their yield while accessing liquidity," a Coinbase spokesperson said. The product, built on Morpho and deployed on Coinbase's Base Layer 2 network, allows borrowers to pledge cbETH or JitoSOL as collateral without unstaking their positions.

Staked ETH loans, launched around Jan. 22, let users borrow up to $1 million in USDC at variable rates starting near 5%, with no fixed repayment deadlines. SOL and JitoSOL support followed on May 12, with a $100,000 ceiling reflecting Solana's higher volatility profile. Coinbase set an 86% loan-to-value liquidation threshold for staked ETH and roughly 70% for SOL. The company started with Bitcoin-backed loans in January 2025 and has methodically expanded collateral types since.

The product eliminates a longstanding tradeoff for stakers who previously had to choose between unstaking their ETH — losing rewards and waiting through withdrawal queues — or selling outright and triggering a taxable event. By using yield-bearing tokens as collateral, borrowers earn staking income while accessing cash. The service is available to US customers excluding New York, where the state's BitLicense regime continues to restrict crypto lending products. Variable rates starting at 5% can move higher, and during sharp market downturns the gap between a liquidation warning and actual liquidation can narrow quickly, Coinbase said.

This article is for informational purposes only and does not constitute investment advice.