Coinbase’s Reported ETH Collateral Lending Needs Confirmation

Coinbase reportedly plans to expand its on-chain lending product, allowing eligible U.S. customers to use Ethereum as collateral for loans up to $1 million.

Official confirmation from Coinbase is pending, leaving stakeholders to anticipate the service’s potential impact on Ethereum liquidity and its broader implications for crypto financing options.

Coinbase’s Potential New ETH Lending Product Unveiled

Recent reports point to Coinbase potentially expanding its on-chain lending features to include Ethereum as collateral. However, this remains unconfirmed by Coinbase or Morpho Labs via primary channels. Ethereum is being considered as the first in a series of collateral assets. Reports suggest this new feature aims to provide liquidity to users who prefer not to sell their holdings.

“The unconfirmed product details highlight a borrowing capacity of up to $1 million USDC, with variables such as loan interest rates being set by Morpho’s supply and demand,” said Brian Armstrong, CEO, Coinbase, “Our focus remains on expanding financial services for our users while ensuring that we launch products that are compliant and meet their needs.”

Market reactions range from curiosity to caution.

ETH Market Factors Amid Uncertainty Over Coinbase Plans

Did you know? Despite reports, ETH collateralization remains unconfirmed officially by Coinbase. This situation mirrors past uncertainties in crypto markets, highlighting the importance of official verification.

As of November 20, 2025, Ethereum is valued at $2,966.31, with a market cap of $358.02 billion and a dominance of 11.61%. Over the past 90 days, ETH experienced a decline of 36.24%, with a notable drop of 13.50% in just the last seven days, according to CoinMarketCap.

Coincu’s research team notes the lack of official confirmation raises questions about the authenticity of the reported expansion. The product’s viability depends on regulatory approvals and market demand for Ethereum-backed loans.