Crypto exchange Coinbase has launched ether-backed loans for eligible U.S. users, allowing them to borrow up to $1 million in USDC without selling their ETH holdings.

The loan product operates through the Morpho lending protocol on Coinbase’s layer 2 network Base, which enables onchain execution of loans with Coinbase serving as a user-friendly access point.

This story is an excerpt from the Unchained Daily newsletter.

Borrowers must maintain a loan-to-value ratio below 86% to avoid liquidation due to ETH price volatility.

Data from Dune shows that onchain lending across the Base ecosystem has topped $1.27 billion, driven by increased activity from both institutional and retail borrowers.

There is currently around $800 million in loans outstanding, with more than 13,300 wallets holding active borrow positions.