Bitcoin Borrowing on Base Reaches Record $1.6 Billion Amid DeFi Adoption

Bitcoin holders are increasingly leveraging the Base platform to secure loans, with a remarkable $1.6 billion borrowed, primarily by Coinbase customers through decentralized finance (DeFi) lending protocols. This surge is largely facilitated by the use of tokenized Bitcoin, specifically Coinbase's cbBTC, as collateral.

The borrowing activity occurs without direct user involvement in the protocols, utilizing platforms like Morpho and Aave to manage collateral through Base. This trend underscores Base's growing significance as a venue for Bitcoin-backed borrowing in the DeFi landscape.

Key Insights

• The outstanding USDC loans backed by cbBTC on Morpho's primary market reached approximately $1.6 billion as of mid-October 2026.
• Bitcoin-backed borrowing on Morpho's Base markets has increased by 55% year-to-date.
• Coinbase's integration with Morpho allows users to access loans without navigating complex DeFi interfaces.

As of October 19, 2026, the flagship cbBTC/USDC market on Base held $3.26 billion in collateral against $1.59 billion borrowed, with a utilization rate of 90.2%. Borrowing costs have also decreased, with rates falling from approximately 7.5% last year to around 5% this year, despite rising loan volumes.

Coinbase's role in this growth is pivotal, having launched variable-rate USDC loans powered by Morpho in January 2025. The platform has since introduced fixed-rate loans, further increasing demand as users convert Bitcoin into cbBTC for collateral.

As Base becomes a primary venue for Morpho's lending activities, the implications for borrowers and lenders are significant. Bitcoin holders can access liquidity without selling their assets, while lenders benefit from high utilization rates, indicating effective capital deployment.

New Insights on Centrifuge’s JAAA Tokenized Fund

• Centrifuge’s JAAA tokenized fund has reached approximately 47% utilization across DeFi protocols.
• The total utilization rate for Centrifuge is reported at 47.6% according to DefiLlama data.
• Key drivers for this milestone include fast redemption mechanisms and the token's use as collateral in lending markets.
• The fund processed over $717 million in redemptions from 93 separate orders in the past 12 months.
• Settlement for these transactions typically occurs within one to two days.
• The fund's assets under management (AUM) have fluctuated between approximately $585 million and $687 million, down from a peak above $1 billion.
• JAAA has recently been utilized as collateral on Aave Horizon, with a proposal to increase its loan-to-value ratio from 81% to 87% currently under consideration.
• The outcome of the Aave Horizon vote and new protocol integrations for JAAA are key markers to watch for future developments.