Coinbase (NASDAQ: COIN) shares surged this week after the crypto exchange announced its Bitcoin-backed lending program had surpassed $1 billion in originations, while momentum from newly passed U.S. stablecoin legislation continued to fuel investor confidence.
The stock rose as much as 25.68% between September 26 and now, trading near $376, making it one of the top gainers among large-cap tech and finance names. In fact, analysis shows that it last reached this level on July 31, 2025.
The recent rally, FinanceFeeds analysis shows, is due to Coinbase’s ability to capitalize on two fast-growing areas of the digital asset economy: on-chain credit markets and regulated stablecoins.
Launched less than a year ago, Coinbase’s lending program allows customers to borrow U.S. dollar-pegged stablecoins using Bitcoin as collateral.
The average loan size is about $54,000, with borrowing limits set to expand from $1 million to $5 million per customer as demand rises.
The initiative, powered by on-chain lending infrastructure provider Morpho, gives users liquidity without forcing them to sell their Bitcoin.
The milestone highlights growing appetite for collateralized crypto credit among both retail and institutional clients.
Passing $1 billion this quickly shows the strength of demand for secure, transparent crypto-backed lending, with this being a bridge between digital assets and traditional finance.
Investor optimism also reflects progress on regulation.
The recently enacted GENIUS Act creates the first federal framework for payment stablecoins, requiring issuers to maintain one-to-one reserves, undergo monthly audits, and protect consumers in insolvency scenarios.
The law offers long-sought clarity for the sector and could accelerate adoption of USDC, the stablecoin Coinbase co-founded with Circle. Stablecoins already play a major role in the exchange’s revenue model, and analysts say regulatory certainty strengthens its long-term position.
Stablecoin rules provide legitimacy to one of Coinbase’s most important business lines, and combined with the growth in lending, this marks a structural expansion of its financial services.
Just recently, it announced a partnership that allowed a 10% yield on USDC, facilitated by Morpho and SteakHouse Finance, allowing its users to earn this.
Coinbase has been bullish on crypto. In fact, it has a layer network built on the Ethereum blockchain, which has continued to gain prominence in the market.
Recently, Coinbase CEO Brian Armstrong projected that Bitcoin could reach a value of $1 million by 2030.
He attributes this potential surge to factors such as the establishment of clear regulatory guidelines, potential purchases of Bitcoin by the U.S. government, and growing demand from large institutional investors.
Meanwhile, Coinbase has partnered with Samsung to give Galaxy smartphone users in the U.S. access to Coinbase One, offering zero trading fees, higher staking rewards, and protection against unauthorized losses. Users can also buy crypto through Samsung Pay, and with over one billion Galaxy devices worldwide, the partnership could become a major channel for retail adoption, benefiting COIN significantly.
