Coinbase launches fixed-rate USDC loans backed by bitcoin

Coinbase is ditching the uncertainty of floating interest for a new credit line that lets users borrow USDC against their bitcoin holdings. Instead of watching rates fluctuate daily, borrowers can now lock in a specific repayment date and a set interest rate from the jump. It's a calculated move to keep traders from selling their stacks when they need quick liquidity for taxes or hardware. The exchange is betting that fixed costs will lure in cautious investors who previously shied away from the volatility of decentralized lending pools. By pinning the loan to a hard deadline, Coinbase eliminates the guesswork that often leads to unexpected liquidations in a choppy market. Traders now have a clearer path to leverage their BTC without the constant fear of a sudden rate spike. Will this predictable structure be enough to pull users back from DeFi protocols, or is the appeal of permissionless borrowing still too strong?