Coinbase hits $1B milestone in Bitcoin-backed loan collateral.
BTC holders prefer loans over selling their crypto assets.
Crypto lending demand rises among retail and institutional users.
Bitcoin-Backed Loans Hit Major Milestone
In a significant sign of the growing demand for crypto financial services, Coinbase has crossed $1 billion in collateral for Bitcoin-backed loans. This milestone demonstrates the increasing use of BTC as a powerful financial tool — not just for trading or holding, but for accessing real-world liquidity.
These loans allow users to borrow cash or stablecoins by locking up their Bitcoin as collateral, without needing to sell it. It’s a preferred method for long-term holders who want liquidity while still holding onto their BTC, avoiding capital gains taxes and retaining exposure to future price increases.
Why Crypto Holders Choose Bitcoin-Backed Loans
The appeal of Bitcoin-backed loans lies in their flexibility and speed. Unlike traditional loans, there are no lengthy approval processes or credit checks. Users can access up to 40% of their BTC’s value in cash or stablecoins, often within minutes.
Coinbase’s growth in this area shows rising interest from both individual investors and institutions. With the broader crypto market gaining more mainstream trust, people are now seeing their Bitcoin not just as a store of value, but as a productive asset.
The fact that users have locked in over $1 billion in BTC collateral signals confidence in both Coinbase’s services and the long-term value of Bitcoin itself.
JUST IN: Bitcoin-backed loans cross $1,000,000,000 in collateral on Coinbase. pic.twitter.com/jEWkV0lyXL
— Watcher.Guru (@WatcherGuru) July 15, 2025
The Future of Crypto Lending
Reaching this milestone also hints at the future of decentralized finance (DeFi) and centralized crypto services. As more people understand how to leverage their digital assets without selling them, crypto-backed lending could become a standard financial tool.
Coinbase’s success in this space is likely to draw attention from traditional financial institutions and regulators, further blending the lines between crypto and traditional finance.
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