Coinbase Expands On-Chain Crypto Lending with New SOL Support
Coinbase has expanded its on-chain crypto lending product to include support for Solana (SOL), allowing users to collateralize SOL for loans of up to $100,000.
This service is based on Coinbase's integration with the DeFi protocol Morpho on the Base network, which previously supported collateralized lending for assets like BTC and ETH. Since its launch last year, the total loan issuance has exceeded $2.3 billion, with BTC accounting for $2.17 billion.
Ben Shen, head of Coinbase Financial Services, stated that this move is an important step in building the "Everything Exchange" strategy. The company expanded this service to the UK market last month.
Source: Public Information
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Coinbase has launched on-chain collateralized loans in deep integration with Morpho since 2024, having previously added support for multiple assets like cbETH and DOGE. The addition of SOL is the latest move in its ongoing expansion within the Base ecosystem, continuing CEO Brian Armstrong's long-term roadmap of "bringing all finance on-chain," despite recording a net loss of $394.1 million and laying off 14% of its workforce in Q1.
In terms of capital strategy, Coinbase is shifting users' SOL and other asset collateral lending resources from centralized lending to the Morpho protocol on Base, aiming to lock in high-net-worth trader engagement and collect on-chain fees and interest spreads. Additionally, by expanding into the UK market, it extends its USD stablecoin lending operations into Europe, attracting more institutional and retail funds into its all-in-one platform ecosystem.
Similar to the early collaboration paths of Binance and Aave, as well as Kraken's institutional lending layout, Coinbase is currently in a control phase of transitioning from an exchange to comprehensive on-chain financial services. The dominance of BTC in the $2.3 billion cumulative loans indicates its continued reliance on top assets, but the inclusion of SOL marks a proactive capture of emerging Layer 1 liquidity.
Essentially, this represents a restructuring of the industry chain: crypto lending infrastructure is shifting from traditional centralized platforms to a fusion of Layer 2+ DeFi protocols like Base. The mechanism relies on Morpho's efficient liquidation and interest rate models to reduce platform bad debt risks. In a regulatory-friendly environment, Coinbase is using on-chain products to validate the "Everything Exchange" narrative, transitioning user assets from mere trading to generating continuous income as collateral, accelerating the concentration of capital towards compliant on-chain financial services.
ABAB News · Cognitive Law
Losses are superficial; the layout is essential. While others are laying off, real players are seizing the next generation of financial entry points.
The more collateral, the stronger the platform's stickiness; whoever first turns user assets into income-generating tools will hold the on-chain pricing power.
The ultimate goal of exchanges is not trading fees, but to transform all financial activities into on-chain programmable cash flows.