[Coinbase Launches ETH-Backed Loan Service via Morpho, Users Can Borrow Up to $1 Million] According to The Block, Coinbase has expanded its on-chain lending product to support Ethereum as collateral, allowing eligible customers to borrow up to 1 million USDC without selling their cryptocurrency. These loans are powered by the Morpho lending protocol on the Base chain, with Coinbase providing the user interface. ETH is the first of multiple collateral assets Coinbase plans to support, aiming to serve long-term holders seeking liquidity for needs such as down payments or debt refinancing, while avoiding taxable events. Initially, ETH-backed loans will use WETH as collateral, with plans to support staked ETH in the future. Staked ETH assets will be converted into cbETH as the underlying collateral token, and related services will be launched soon. The loans do not have a fixed repayment schedule; borrowers can avoid liquidation by maintaining a healthy loan-to-value (LTV) ratio. Borrowers can access up to 75% LTV, with liquidation triggered at 86% LTV, which is the same ratio as BTC-backed products. Loan interest rates are determined by the supply and demand dynamics on Morpho, and funds obtained through the loans cannot be traded on the Coinbase platform. This service is currently available to verified users in the U.S. (excluding New York State), with plans to expand access to international users in the future.