Interest in Bitcoin-backed loans returns: Will TradFi join this time?
The Bitcoin-backed loans market is expected to grow fivefold in the coming years. Cointelegraph explores the nuts and bolts of the niche industry.
On Jan. 16, Coinbase re-launched a Bitcoin-backed loan service, allowing US users to borrow USDC (USDC) using their Bitcoin (BTC) as collateral.
Coinbase launches BTC-backed loans. Source: @coinbase on X
Coinbase’s loan service is a mix of CeFi and DeFi. The company converts BTC into wrapped BTC (cbBTC), which it then transfers to Morpho, a DeFi protocol built on Base. The latter then manages the loan terms and interest rates dynamically.
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Author: Marie Poteriaieva
