Headline: Coinbase Launches $1 Million cbETH Borrowing Feature for Staked Ether Users

Coinbase has introduced a new borrowing feature enabling users to access up to $1 million in liquidity using cbETH — its tokenized staked ether representation — as collateral. The service, available to eligible U.S. customers excluding New York, allows borrowers to convert USDC against cbETH held on the platform into dollars. Powered by Morpho’s onchain lending protocol, loans are overcollateralized and have variable interest rates tied to market conditions. Borrowers can repay at any time without fixed schedules or maturity dates. However, a loan-to-value ratio below 86% is required to avoid liquidation during volatile market movements. This move reflects growing demand for unlocking liquidity from staked assets as ether staking shifts toward long-term strategies. By leveraging cbETH as collateral, Coinbase enhances staked ether’s utility, allowing users to retain exposure to ETH price movements and staking rewards while accessing cash for large purchases or rebalancing. The feature aligns with increasing competition among exchanges and DeFi protocols offering capital-efficient borrowing tied to staked assets. It positions Coinbase as a leader in providing flexible crypto holdings solutions amid volatile markets.