Bitcoin Borrowing on Morpho Protocol Hits Record $1.6 Billion

Key Facts

1Bitcoin pledged as collateral on Morpho's Base market doubled this year to approximately 39,800 coins.

2The collateral supports a record $1.6 billion in stablecoin loans, allowing holders to access liquidity without selling.

Bitcoin holders have borrowed a record $1.6 billion in stablecoins using the Morpho protocol on Coinbase's Base network. CoinMarketCap reported that the amount of Bitcoin pledged as collateral in Morpho's market doubled this year to approximately 39,800 coins. This growth allows investors to access liquidity through decentralized finance (DeFi) without the need to sell their Bitcoin holdings.

Current debt levels stand at approximately 48% of the collateral value, remaining well below the 86% liquidation threshold. According to CoinMarketCap, the cost of borrowing has decreased over the past year to approximately 5%. Additionally, variable-rate loans for Coinbase customers reached more than $1.4 billion in September as demand for leveraged liquidity continues to rise.