Solana Joins Coinbase Crypto Loan Program

Coinbase Adds Solana Collateral for Loans Up to $100,000

Coinbase has officially added Solana to its crypto-backed lending program, giving eligible U.S. users a new way to access liquidity without selling their holdings. Users can now use their Solana holdings as collateral to borrow up to $100,000 in USDC through Coinbase's onchain lending system, powered by Morpho on the Base network.

The offering allows borrowers to access funds instantly in USDC, pay interest rates as low as 5%, and repay at any time with no monthly payments or deadlines. These crypto-backed loans are available in the United States, except New York.

The service is non-custodial, meaning users retain control of their collateral within the Morpho smart contract. Coinbase facilitates the interface but does not hold the assets directly. By integrating Solana, Coinbase is broadening access for holders who want liquidity without triggering a taxable event or exiting their position.

Bitcoin Still Dominates, but Lending Volume Grows

Coinbase's crypto-backed loan originations have now surpassed $2.3 billion. Bitcoin remains the dominant collateral asset, accounting for about $2.17 billion in originations, while ETH-backed loans total around $110 million. XRP-backed loans have reached roughly $31.6 million.

The addition of Solana marks the first major Layer 1 blockchain outside Bitcoin and Ethereum to be added to Coinbase's lending stack. Solana trades with deep liquidity, large retail ownership, and active institutional interest, giving Coinbase a stronger candidate for collateralized borrowing than many long-tail tokens.

Coinbase also launched the crypto-backed lending product in the United Kingdom last month as part of its broader push into onchain financial services. Coinbase CEO Brian Armstrong remained optimistic, saying that eventually "all of finance" will move onchain. The expansion comes as Coinbase reported a first-quarter net loss of $394.1 million and laid off around 14% of its workforce.

Sources:
PYMNTS: Coinbase and Morpho Unveil Solana-Backed Loans
The Block: Coinbase Adds Solana-Backed Loans Through Morpho