With over $1B in Bitcoin loans Coinbase targets $100B in 5 years

Coinbase has launched a new product: loans secured by Bitcoin collateral. In just eight months, the platform has already crossed $1 billion in originations—and sets its sights on a bold target of $100 billion by 2030. This article breaks down how that might happen, what it depends on, and what risks lie ahead. What’s Coinbase Doing with Bitcoin Loans? Coinbase’s loan product allows users to post Bitcoin (via a wrapped form called cbBTC) as collateral. Borrowers receive USDC (a stablecoin) in their Coinbase accounts. If the loan-to-value (LTV) ratio reaches 86 percent , the collateral may be liquidated. There is no fixed repayment schedule. Coinbase has already surpassed $1 billion in these on-chain, Bitcoin-backed originations just months after launching the service. CryptoSlate The $100 B Target: Ambitious but Possible? To hit $100 billion by 2030, Coinbase would need ~7.7 percent compounded monthly growth starting from its current originations rate. CryptoSlate If they tried to reach it by 2029, they'd need ~9.6 percent monthly growth. To do it by 2027 would demand ~21.2 percent monthly growth—a much steeper scale. Much of this depends on increasing liquidity, boosting collateral and USDC supply, and growing average loan sizes. CryptoSlate Why This Strategy Might Work • The Bitcoin collateral model offers a way to merge crypto assets with credit infrastructure • Using cbBTC ensures 1:1 backing by real Bitcoin with proof-of-reserves to build trust • The DeFi / CeFi hybrid setup (e.g. using Morpho markets) allows more scalable lending • Growing demand for secured lending and on-chain credit products may provide tailwinds Risks & Challenges to Watch • Bitcoin’s price volatility: a crash could trigger mass liquidations or margin calls • Liquidity crunches: if there isn’t enough USDC or capital to scale, growth stalls • Sharp spikes in utilization may push borrowing rates up, making large loans less attractive • Legal, regulatory, and counterparty risk across jurisdictions • The 86 percent LTV threshold leaves less room in downturns, especially for higher leverage borrowers What This Means for the Crypto Landscape Coinbase entering the secured lending space with Bitcoin collateral is another step in blurring boundaries between DeFi and traditional finance. If successful, this could encourage other exchanges and platforms to introduce similar credit products. It also shows how Bitcoin is evolving from a speculative asset to one that can underlie real financial services (like loans) at scale. Final Thoughts Coinbase setting a $100 billion originations target for its Bitcoin-backed loans is bold—and the math says it’s not impossible. But it hinges on consistent growth, liquidity management, stable collateral markets, and few shocks along the way. If they pull it off, it could reshape how companies use Bitcoin in their balance sheets and how credit works in crypto.