Coinbase Offers $1M USDC Loans Backed by Tokenized Staked ETH (cbETH)
On Jan. 23, 2026 Coinbase introduced a new lending product that lets eligible customers borrow up to $1 million in USDC by pledging tokenized staked ETH (cbETH) as collateral. The offering is designed to give ETH stakers immediate fiat-stablecoin access while their ETH remains staked, effectively turning cbETH into a more liquid asset within Coinbase’s ecosystem.
The product could raise capital efficiency for ETH holders and intensify competition with DeFi lenders and other centralized lenders, as cbETH becomes usable across borrowing and trading strategies. At the same time, borrowers face cbETH price volatility, potential validator/slashing risk and standard liquidation and counterparty concerns, so risk management and Coinbase’s underwriting will determine uptake. The launch underscores growing demand for staking-native credit products and may influence how staked ETH interacts with broader lending markets.