Coinbase resumes BTC lending for U.S. users via Morpho protocol

Coinbase Exchange has resumed offering Bitcoin-backed loans for U.S. customers, excluding those in New York, leveraging the decentralized finance (DeFi) protocol Morpho (MORPHO) instead of acting as the direct lender, according to DL News. Users can borrow USDC by collateralizing Bitcoin, which is converted into cbBTC, a DeFi-compatible token. The loans, which are overcollateralized to avoid defaults, represent Coinbase's renewed push into lending after halting a similar program in 2023 following a U.S. Securities and Exchange Commission (SEC) complaint.