Bitcoin-Backed Loans with Morpho

Access global liquidity and instant loans against BTC collateral on immutable Morpho Blue markets.

Morpho powers crypto-backed lending products where users post BTC (as cbBTC or WBTC) as collateral and borrow stablecoins like USDC. Partners plug into global liquidity, offer instant loans, and maintain full ownership over the product experience—while Morpho handles the noncustodial credit rails.

How It Works

• Users deposit BTC collateral into a Morpho Blue market with fixed parameters (oracle, LLTV, interest rate model).
• Borrowers receive USDC loans against collateral, maintaining positions above liquidation thresholds.
• Anyone can repay undercollateralized debt and seize discounted collateral during liquidations.
• Positions remain noncustodial — users control collateral and can repay at any time.

Frontends abstract blockchain complexity while Morpho handles position accounting, interest, and liquidations onchain. The same pattern—fintech in the front, Morpho in the back—powers products like Coinbase Loans and other embedded borrow experiences.

Read how Coinbase built on Morpho infrastructure