Coinbase's Crypto-Backed Loans Hit $2.3 Billion as 17 Banks Move Deposits On-Chain

Published October 17, 2026, 15:45 PKT. Based on Coinbase's reported loan figures as of October 17, 2026 via Cointelegraph (primary source), and secondary reporting by Crypto Briefing, BBX and SpendNode.

Coinbase's crypto-backed lending book now stands at $2.3 billion in outstanding loans, according to figures the exchange reported on October 17, 2026, as reported by Cointelegraph. Alongside the lending milestone, 17 banks are now developing tokenized deposits, putting the bank-led push to move commercial deposits onto blockchain rails squarely in the spotlight.

The $2.3 billion loan book

The loan product, which launched in January 2025, lets eligible US users outside New York post Bitcoin as collateral and borrow USDC, a dollar-pegged stablecoin, without selling their coins. The loans are routed through Morpho Blue, a decentralized lending protocol, on the Base network, Coinbase's Layer 2.

By mid-September 2026, outstanding variable-rate loans alone had passed $1.4 billion, backed by approximately $3 billion in collateral, according to Crypto Briefing's October 17 report. About a month later, total crypto-backed loans stood at $2.3 billion. Crypto Briefing noted the September figure covered only variable-rate loans, so the two numbers are not a perfect like-for-like comparison. Readers should also note that cumulative loan originations were already reported at $2.3 billion back in May 2026, while the October figure is the outstanding book as now reported.

Fixed rates arrive on Morpho Midnight

On September 22, 2026, Coinbase added fixed-rate loans through Morpho Midnight, giving borrowers a way to lock in their costs instead of paying floating rates. The fixed-rate option rounds out a product that had previously run entirely on variable rates since launch.

New collateral and crypto-backed mortgages

Coinbase has also widened what borrowers can pledge. Collateral options now include XRP, Dogecoin, Cardano and Litecoin, with XRP and the others added in August 2026, according to Crypto Briefing.

In the same month, Coinbase partnered with Better to facilitate crypto-collateralized conforming mortgages under Fannie Mae, extending the borrow-against-crypto model from consumer loans toward home financing.

Seventeen banks move deposits on-chain

The other headline figure in the October 17 reports is the bank count: 17 banks are developing tokenized deposits, according to Cointelegraph's reporting. A tokenized deposit is a regular bank deposit represented on a blockchain, allowing real-time settlement instead of waiting on legacy payment rails.

JPMorgan's JPMD tokenized deposit has been operational on Base for institutional use since mid-2026, according to Crypto Briefing. Citi and BNY are also active in tokenized deposit efforts, and several UK banks are planning network launches targeted for 2027, part of a broader push that includes consortium projects across the UK and beyond.

The liquidation risk behind the book

The structure that makes these loans attractive is also where the risk sits. A crypto-backed loan is only as safe as its collateral, and that collateral moves. A sharp drawdown forces margin calls and, if a borrower cannot post more collateral, liquidation at the worst possible moment. Bitcoin traded near $81,500 on October 17, 2026, down about 1.5% on the week, and collateral posted against a $2.3 billion book faces that volatility every day.

This article is news reporting and is not investment advice.

Sources

• Cointelegraph, October 17, 2026, primary source via exchange figures: Coinbase has $2.3 billion in cryptocurrency-collateralized loans outstanding; 17 banks developing tokenized deposits
• Crypto Briefing, October 17, 2026, secondary source: $2.3 billion crypto-backed loans outstanding as reported October 17, 2026; product launched January 2025; eligible US users outside New York post Bitcoin collateral and borrow USDC; loans routed through Morpho Blue on Base; mid-September outstanding variable-rate loans passed $1.4 billion backed by approximately $3 billion in collateral; September 22, 2026 fixed-rate loans via Morpho Midnight; September figure covered variable-rate loans only, not a like-for-like comparison; XRP, DOGE, ADA and LTC collateral added August 2026; Better partnership for crypto-collateralized conforming mortgages under Fannie Mae in August 2026; JPMorgan JPMD tokenized deposit operational on Base for institutional use since mid-2026; Citi and BNY active; UK banks planning network launches targeting 2027
• BBX flash, October 17, 2026, 09:31 UTC, secondary source: Coinbase has $2.3 billion in cryptocurrency-collateralized loans and 17 banks developing tokenized deposits
• SpendNode, October 17, 2026, secondary source: Coinbase reported $2.3 billion in crypto-backed loans outstanding with 17 banks involved, per Cointelegraph post on October 17, 2026