Ethereum News Today: Coinbase's ETH Loans Signal DeFi's Mainstream Ascent

Coinbase has launched ETH-backed loans as onchain lending surpasses $1.25 billion, signaling a pivotal shift in the crypto lending landscape. The platform's new service allows users to collateralize Ethereum (ETH) to access liquidity without selling their holdings, a move that aligns with growing demand for decentralized finance (DeFi) solutions. This expansion comes as Ethereum's price stabilizes above key support levels, despite short-term volatility following BlackRock's deposit of 64,707 ETH into Coinbase Prime, which raised concerns about potential sell-offs.

The ETH-backed loans feature is part of Coinbase's broader strategy to integrate DeFi tools into its ecosystem. In Brazil, the company is rolling out its "DeFi Mullet" platform, enabling users to trade over 10,000 tokens directly within the Coinbase app. This service, which launched in the U.S. in October 2024, simplifies access to decentralized exchanges by aggregating liquidity and eliminating the need for users to navigate separate platforms. Brazilian users will benefit from self-custody wallets by default, maintaining control of their assets while trading, and Coinbase will absorb network fees to lower barriers for smaller transactions.

The timing of the Brazil rollout aligns with the country's evolving regulatory framework, which now classifies stablecoin transactions and certain self-custody wallet transfers as foreign-exchange operations. Despite these stringent requirements, Brazil's crypto market remains one of Latin America's fastest-growing, with over 10% of the population owning digital assets. Coinbase's entry into this market underscores its ambition to become a global "everything app" for crypto, offering 24/7 access to trading, staking, and tokenized assets.

A key component of Coinbase's strategy is its partnership with Coinbase Crypto Services, which provides staking infrastructure for the 21Shares Ethereum ETF. Under a Master Infrastructure-As-A-Service Agreement, the Trust receives a share of gross staking rewards, enhancing returns for investors while adhering to regulatory safeguards. This collaboration highlights Coinbase's role in bridging institutional-grade services with retail accessibility, a theme echoed in its recent financial performance. In Q3 2025, Coinbase reported a fivefold increase in net income to $432.6 million and a 55% revenue rise to $1.9 billion, driven by growth in its Ethereum Layer 2 network, Base.

The expansion of onchain lending to $1.25 billion reflects broader adoption of crypto-backed financial products. However, challenges remain, including regulatory scrutiny and market volatility. For instance, BlackRock's ETH deposit into Coinbase Prime - part of a $198 million sales spree - triggered fears of a sell-off, though Ethereum has held above critical support levels. Meanwhile, Coinbase's stock has faced pressure, declining 25.2% in October 2025 amid broader market corrections.

As Coinbase navigates these dynamics, its focus on user-friendly DeFi integration and regulatory compliance positions it to capture emerging opportunities in markets like Brazil. By combining institutional-grade infrastructure with retail accessibility, the company aims to solidify its role as a cornerstone of the crypto ecosystem.