Bitcoin-Backed Borrowing on Base Reaches Record $1.6 Billion Led by cbBTC Loans

Bitcoin holders have driven outstanding borrowing on Base to a record of approximately $1.6 billion, largely using Coinbase-wrapped Bitcoin (cbBTC) as collateral. On lending protocol Morpho, Bitcoin-backed borrowing on Base has grown 55% year-to-date, spurred by Coinbase integrating Morpho's architecture into its consumer front end. The flagship cbBTC/USDC market holds $3.26 billion in collateral against $1.59 billion in active loans at a 90.2% utilization rate. Concurrently, borrowing rates fell from roughly 7.5% last year to near 5%, expanding access to dollar liquidity without selling spot Bitcoin.