Bitcoin News Today: Onchain Is the New Online: Coinbase Aims for $100B TVL in DeFi Revolution

Coinbase's on-chain lending platform has reached $1 billion in total value locked (TVL), a milestone the company attributes to its strategic expansion into decentralized finance (DeFi). CEO Brian Armstrong has set an ambitious target of scaling the platform to $100 billion in TVL, describing the growth trajectory as a "hockey-stick" curve that reflects accelerating institutional and retail adoption of crypto-backed lendingtitle8^[4]. This development positions Coinbase as a key player in the on-chain lending sector, which leverages blockchain technology to enable instant, transparent, and permissionless borrowing and lending of digital assets.

The platform's current offerings allow users to collateralize Bitcoin for USDC loans, with interest rates set dynamically by the Morpho protocoltitle1^[1]. Borrowers can access liquidity without transferring custody of their crypto assets, a feature that has attracted both individual and institutional participants. Coinbase's recent acquisition of the Sensible team further underscores its commitment to expanding on-chain consumer services, with the founders tasked with integrating DeFi-powered applications into its ecosystem. This move aligns with Armstrong's broader vision of transforming Coinbase into an "everything exchange," offering a unified platform for trading, staking, payments, and on-chain lending.

Armstrong has emphasized the necessity of blockchain adoption, comparing the current shift to the internet's rise in the early 2000s. He argues that "onchain is the new online," a paradigm shift that will redefine financial infrastructure across industriestitle9^[5]. The CEO's prediction that 10% of global GDP could be crypto-based by 2030-equivalent to $10 trillion in tokenized value-highlights his confidence in the sector's long-term potentialtitle9^[5]. This vision is supported by Coinbase's recent DEX (decentralized exchange) launch, which enables users to trade millions of on-chain assets directly within the app, reducing barriers to entry for emerging projects.

Market participants are closely monitoring on-chain metrics such as utilization rates and lending rates as indicators of institutional demand. Analysts suggest that Coinbase's expansion into DeFi could drive increased trading volumes for tokens like AAVE and COMP, which power lending protocolstitle8^[4]. Additionally, the platform's focus on Bitcoin as collateral-currently the largest asset class in its lending ecosystem-could reinforce BTC's role as a reserve asset in decentralized finance. If adoption accelerates, Bitcoin's price may benefit from heightened demand for its use in on-chain lending, a trend that could influence broader crypto market dynamicstitle8^[4].

Coinbase's strategic partnerships and regulatory engagement further bolster its on-chain ambitions. The company has collaborated with major banks like JPMorgan to integrate crypto custody and payments solutions, signaling growing institutional acceptance. Armstrong has also lobbied for clear regulatory frameworks, noting that bipartisan support for crypto legislation in the U.S. is a "freight train" that will accelerate adoption. These efforts aim to position Coinbase as a bridge between traditional finance and the decentralized economy, with on-chain lending serving as a critical use case.

The CEO's $100 billion target reflects a calculated approach to scaling the platform while mitigating risks. Coinbase has emphasized the importance of maintaining healthy loan-to-value (LTV) ratios to prevent liquidations, a challenge inherent to crypto-backed lending due to price volatilitytitle1^[1]. By leveraging Morpho's on-chain infrastructure and smart contracts, the platform automates collateral management, reducing operational complexity for users. This technological edge, combined with Coinbase's brand trust and regulatory compliance, positions it to capture a significant share of the on-chain lending market as adoption growstitle8^[4].

As Coinbase advances its on-chain strategy, the broader implications for the crypto industry remain significant. The company's ability to scale its lending platform could catalyze further innovation in tokenized assets, AI-driven financial services, and cross-border payments. With Armstrong's vision of a fully on-chain future gaining traction, the path to $100 billion may hinge on continued regulatory clarity, institutional participation, and the seamless integration of blockchain into everyday financial activitiestitle8^[4]title9^[5].