If you're a Coinbase user, you may be able to use the bitcoin you own as collateral to get a loan thanks to a new service launched Thursday. But the offering has its risks.

Coinbase, in partnership with Morpho Labs, has launched a Bitcoin-backed loan service, allowing U.S. users to borrow up to $100,000 in USD Coin (USDC) using their Bitcoin as collateral.

XRP, the third-largest cryptocurrency by market value, has replaced bitcoin (BTC) as the most-traded digital asset on Coinbase (COIN), the

Bitcoin had a wild week, dipping below $90,000 before surging above $105,000 just days ahead of Donald Trump's White House return.

Furthermore, instead of issuing these loans on a blockchain even remotely related to Bitcoin (such as Bitcoin sidechains or Bitcoin L2s), Coinbase is issuing them through Morpho Labs, a DeFi platform best described as an AAVE competitor. While Morpho is a well-established platform—and I don’t doubt its security—it has no connection to Bitcoin.

The nation's largest crypto exchange, Coinbase, endorsed the idea of a U.S. bitcoin strategic reserve Friday, part of a wide-ranging blog post on "economic freedom" from CEO Brian Armstrong, shared in advance exclusively with Axios.

Coinbase has introduced a borrowing function for Bitcoin holders on the exchange. The crypto exchange announced it was reintroducing a feature allowing users to borrow against their Bitcoin directly through the exchange.

Coinbase Exchange is backing the idea of a strategic Bitcoin reserve as CEO Brian Armstrong noting that the coin is "economic freedom"

Did President-elect Trump just ignite a Bitcoin firestorm? Many crypto-related stocks posted big gains on Friday, just ahead of next week's inauguration.

Coinbase's setup caps each borrow at $100,000 in USDC. To borrow that much money customers will need to post more than that amount of bitcoin. Morpho will start liquidating the collateral if the loan-to-value ratio flies too close to the sun.

Publicly-traded United States-based cryptocurrency exchange Coinbase is offering Bitcoin-backed (BTC) loans to its U.S. users once again.