Coinbase’s feature may reduce sell pressure, which also could help Ethereum prices more stabilize and recover.
As one of the leading U.S. cryptocurrency exchanges, Coinbase has expanded its lending service in a major way by introducing ETH-backed loans. U.S. users now have a simple way to borrow money without having to have their Ether sold. This feature, which was launched in November 20, 2025, allows eligible users that are also outside New York City to borrow up to $1 million in USDC by using ETH as guarantee.
As anticipated in a recent Crypto News Flash (CNF) update — when Coinbase launched a transparent token-sales platform offering users fair accesses and deeper liquidity — this new ETH-backed loan product has even more to offer. According to a tweet from Brian Armstrong, the first product showcase event is scheduled for December 17.
In response, analysts noting that this solves a common problem for people who need liquidity but do not want to trigger taxable sales or miss future upside. Coinbase explained that the entire system operating through Morpho on Base, its Ethereum layer-2 network, which transactions cost only a few cents, making the borrowing process much faster and cheaper than using Ethereum’s main chain.
Furthermore, the company mentioned that this update improves its previous lending system, which had only supported Bitcoin-backed loans. Coinbase also confirmed that BTC-backed loans now go up to $5 million.
This launch comes at a time when Base is growing super fast, and experts noted that more than $1.25 billion in on-chain lending has already flowed through Coinbase’s ecosystem. Analysts said Base has becoming a strong DeFi hub thanks to Morpho’s risk-management tools and efficient lending system. Coinbase CEO Brian Armstrong wrote:
ETH-backed loans unlock liquidity without selling, empowering believers in something bigger.
Industry watchers also said this reflects Coinbase’s strategy to keep users active on its platform instead of losing them to competitors like Binance or Kraken coins. Hence, the impact on Ethereum’s price could also be significant because the ability to borrow reduces the need for users to sell ETH during market dips.
Analysts said this giving ETH more space to rise in the coming months. Some market watchers pointed out that moving more ETH onto Base tightens mainnet supply — especially since more than 30% of ETH is already staked. With that in mind, they argued that this combination could help push ETH toward $5,000 if momentum continues.
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