Coinbase has announced an increase in its Bitcoin-backed loan limit to $1 million. This decision is in response to strong demand for crypto-backed lending services.
Increase in Loan Limit
Coinbase has raised the limit for Bitcoin-backed loans from $100,000 to $1 million. This change follows $130 million in loan originations recorded in 2025.
Market Demand for Crypto Loans
The increase in loan limit reflects the growing demand for crypto-lending products. Coinbase CEO Brian Armstrong noted that this expansion reflects significant business growth and market demand.
Prospects and Risks
The integration of technology and dynamic rate adjustments by Morpho Labs enhance user experience. Future regulatory developments may bring new types of collateral for loans. Coinbase maintains compliance with U.S. regulations, ensuring safer borrowing conditions.
Coinbase's decision to raise the loan limit showcases investor confidence in crypto-backed loans and denotes shifts within the financial services marketplace.
