- Ether holders on the exchange can borrow up to $1M in USDC using ETH as collateral.
- That ensures access to liquidity/cash without selling their holdings.
- The service is available in all US states, excluding New York.
Leading exchange Coinbase has introduced a new feature that will likely reduce selling pressure amid the current broader crypto market turmoil.
The trading platform has launched Ethereum-backed loans, allowing users in most American states to access on-chain cash without offloading their holdings.
Notably, borrowers can use ETH assets as collateral and receive loans of up to $1,000,000 in USDC stablecoin.
The team has confirmed on X:
ETH-backed loans are here. You can borrow USDC against your Ethereum, unlocking liquidity without selling.
If you believe in somΞTHing, this one’s for you.
ETH-backed loans are here.
You can borrow USDC against your Ethereum, unlocking liquidity without selling.
Available now in the U.S. (ex. NY). pic.twitter.com/eOvJ2BWPfr
— Coinbase 🛡️ (@coinbase) November 20, 2025
This move is vital for Ethereum holders who want liquidity without dumping their tokens.
Rather than selling ETH and possibly missing out on potential price gains, Coinbase users can leverage their balances while keeping them intact.
How do ETH-backed loans work?
The process is straightforward. Users deposit Ethereum on their Coinbase accounts as collateral to borrow USDC.
They receive back their collateral after repayment.
Meanwhile, customers will enjoy top-notch flexibility.
Individuals can borrow while maintaining exposure to their holdings, access funds almost instantly, and leverage USDC for various on-chain activities, including day-to-day expenses and trading.
Nevertheless, borrowers should consider the fact that Ethereum’s price movements can impact their loans.
For instance, a swift decline in the alt’s value could demand increasing collateral to avoid liquidation.
Why should you care?
Accessing cash online means selling assets for most cryptocurrency investors, even sometimes facing tax consequences.
Coinbase solves that through Ethereum-backed loans, offering access to liquidity without offloading assets.
The development reflects how cryptocurrency firms are expanding beyond trading services.
Most networks are integrating lending, borrowing, and earning solutions for their users as digital assets’ adoption continues.
Moreover, it confirmed Coinbase’s trust in Ethereum as a legitimate financial instrument, equal to real-world assets (like real estate and stocks) that can serve collateral purposes.
Notably, Coinbase introduced cryptocurrency-backed loans in mid-January this year, starting with Bitcoin.
The goal was to give users control over their finances while ensuring safety, speed, and transparency.
The team emphasized:
Crypto-backed loans are another major step towards empowering our customers with greater control over their financial lives. Coinbase customers can now get easier, faster access to everyday financial services.
The new addition signals demand for such services as cryptocurrencies go mainstream.
ETH price outlook
The news comes as Ethereum battles overwhelming bearish sentiments.
It is trading at $2,837 after losing more than 3% and 13% the past day and week.
ETH should hold above the $2,800 support to prevent massive declines.
Ethereum requires massive trading volumes and renewed institutional interest, through ETFs, to recover from its current slumber.
