Coinbase Unveils $1 Million ETH-Staked Lending Service, Unlocking Liquidity for Staked Ethereum Holders

In a significant development for the cryptocurrency lending landscape, Coinbase has launched a pioneering lending service that allows users to borrow up to $1 million in USDC using their staked ethereum (ETH) as collateral. This innovative product, announced in early 2026, enables ETH holders to access liquidity without the need to unstake their assets, thereby preserving their staking rewards and network participation. The service utilizes cbETH, Coinbase's liquid staking token representing staked ETH, as the collateral asset within a decentralized lending protocol framework powered by Morpho. Initially available to customers in the United States (with the exception of New York state) and with limited access in the United Kingdom, this offering marks a major step in bridging decentralized finance (DeFi) functionality with a trusted centralized exchange platform. By providing instant loan approvals and leveraging staked assets that are otherwise illiquid for a set duration, Coinbase addresses a critical need for liquidity among long-term ETH investors and validators. This move is poised to enhance capital efficiency within the Ethereum ecosystem, potentially attracting more institutional and retail participants to stake their ETH by mitigating the traditional liquidity lock-up drawback. The launch underscores the growing maturity of crypto-financial products and Coinbase's strategic expansion beyond simple trading into comprehensive crypto banking services, reinforcing the bullish case for integrated digital asset platforms in the evolving financial sector.

Coinbase Launches $1M ETH-Staked Lending Service

Coinbase has introduced a groundbreaking lending feature allowing users to borrow up to $1 million in USDC against their staked Ethereum (ETH) holdings. The service leverages cbETH, Coinbase's representation of staked ETH, as collateral without requiring users to unstake their assets.

Available to U.S. customers (excluding New York) with limited UK access, the product is powered by Morpho's decentralized lending protocol. Loans are instantly credited upon approval, with collateral managed onchain through smart contracts.

Borrowers must maintain an 86% loan-to-value ratio to avoid liquidation—a threshold that may face pressure during ETH's characteristic volatility. This MOVE significantly expands the utility of staked assets while maintaining market exposure.

GameStop Moves $200M in Bitcoin to Coinbase Prime Amid Potential Losses

GameStop has transferred over half of its bitcoin holdings to Coinbase Prime, signaling a potential sell-off that could lock in tens of millions in unrealized losses. The company shifted 2,396 BTC (worth approximately $200 million) in two transactions on January 17 and 20, representing 51% of its total BTC reserves.

Originally acquired at an average price of $107,900 per BTC in mid-2025, the current market price of around $89,109 WOULD force GameStop to realize losses nearing $76 million if sold. Blockchain analyst Sani first flagged the transfers via on-chain data, though the company has yet to confirm any disposition plans.

The move comes as Bitcoin struggles to reclaim its 2025 highs, trading 17% below GameStop's acquisition cost. Market observers note the transfers' timing suggests either risk management or capitulation, given the steep paper losses involved.