Coinbase Unveils $1 Million Crypto-Backed Lending Program for U.S. Clients

In a significant move to expand its financial services ecosystem, leading cryptocurrency exchange Coinbase has launched a new lending feature that allows U.S. users to borrow up to $1 million using their staked Ethereum holdings as collateral. Announced on January 24, 2026, this initiative specifically targets long-term Ethereum investors who wish to access liquidity without selling their digital assets, thereby enabling them to maintain their market exposure and continue earning staking rewards. The loans are denominated in USDC (USD Coin) and can be seamlessly converted to U.S. dollars within the Coinbase platform, offering a streamlined and integrated financial solution. The core of this offering is the use of cbETH (Coinbase Wrapped Staked ETH) as collateral. cbETH represents staked Ethereum through Coinbase's institutional staking service, allowing users to benefit from Ethereum's proof-of-stake rewards while utilizing the token in decentralized finance (DeFi) applications or, as now demonstrated, as collateral for loans. This product addresses a common dilemma faced by crypto investors: the need for cash flow without triggering taxable events or sacrificing long-term investment positions. By pledging cbETH, users can unlock the value of their appreciating assets to cover expenses, invest in other opportunities, or manage personal finances, all while their underlying ETH continues to participate in network validation and generate yield. This launch represents a strategic expansion of Coinbase's suite of financial products, positioning the exchange not just as a trading venue but as a comprehensive crypto-native bank. It reflects a growing trend in the digital asset industry where traditional financial services like lending and borrowing are being reinvented on blockchain infrastructure with greater efficiency and accessibility. However, the announcement hints at existing regulatory constraints, underscoring the careful navigation required in the U.S. financial landscape. For the crypto market, such institutional-grade products are crucial for maturation, as they provide sophisticated tools for asset management and capital efficiency, potentially attracting more traditional investors into the ecosystem. This move by Coinbase could set a precedent for other exchanges and further blur the lines between conventional finance and the innovative world of digital assets.

Coinbase Launches $1M Crypto Loans With cbETH Collateral for U.S. Users

Coinbase has introduced a borrowing feature allowing U.S. users to access up to $1 million in liquidity by pledging cbETH as collateral. The MOVE targets long-term ETH holders seeking liquidity without divesting their positions, while maintaining exposure to staking rewards. Loans are denominated in USDC and can be converted to dollars within the platform, streamlining the process for users.

Regulatory constraints exclude New York residents, but the product remains available nationwide. By keeping transactions on-platform, Coinbase enhances capital efficiency and reduces reliance on external transfers. The offering underscores the growing utility of tokenized staking assets in regulated finance.

The initiative reflects broader industry trends where institutional-grade tools meet crypto-native strategies. As staked ETH gains traction as collateral, platforms like Coinbase are bridging decentralized finance with traditional liquidity management.

Senator Lummis Urges Swift Passage of Crypto Clarity Act Amid Regulatory Crossroads

Senator Cynthia Lummis has intensified calls for Congress to pass the Clarity Act, framing the legislation as critical for maintaining U.S. competitiveness in digital assets. "Every day without this Act is a day we cede ground to other nations," Lummis declared, emphasizing President Trump's pro-crypto stance as a unique opportunity.

The proposed bill has sparked debate among experts, with Ripple CEO Brad Garlinghouse publicly urging Coinbase to support the current version. "Perfect becomes the enemy of good," Garlinghouse warned, suggesting over-negotiation could derail essential protections against what Lummis describes as the Biden administration's "regulatory warfare" against crypto.

Market observers note the Act's passage could significantly impact XRP and other assets caught in regulatory limbo. The legislation promises to create definitive guardrails that WOULD prevent future crackdowns by anti-crypto policymakers like Senator Elizabeth Warren.