Both let you borrow against Bitcoin without selling, but they are built on opposite foundations. Coinbase's loan is a decentralized finance (DeFi) product with a Coinbase front end; Figure is a centralized lender (CeFi) run by a publicly listed company. The right one depends on what you value: the lowest floating rate, or US dollars with higher leverage from a regulated public company.
This is an independent comparison, not advice. Coinbase figures are a snapshot because its rate floats; Figure figures are verified weekly.
Dimension
Coinbase (DeFi)
Figure (CeFi)
Model
DeFi (Morpho on Base)
CeFi (a public company)
You receive
USDC, a stablecoin
US dollars
Rate
~5 to 6% variable, no ceiling
10.0 to 12.45%
Max LTV
~75% (liquidates at 86%)
75%
Custody
cbBTC in a Morpho market; BTC backing custodied by Coinbase
Coinbase data is a snapshot (its rate floats); Figure figures are verified weekly. Neither is a recommendation.
The core difference
Figure lends you US dollars, allows up to 75 percent loan-to-value, and self-custodies your Bitcoin through Fireblocks multi-party computation, with a cure window before liquidation. Coinbase converts your Bitcoin to cbBTC, supplies it to a Morpho market on Base, and lends you USDC, with liquidation enforced automatically by code. One is a public company; the other is a protocol plus Coinbase's custody of the wrapped-Bitcoin backing. Our CeFi vs DeFi guide covers why that distinction drives everything else.
Where they differ
Rate. Coinbase is usually cheaper on the headline number (recently around 5 to 6 percent, variable, no ceiling) than Figure (from about 10 percent). Figure's rate is steadier.
What you receive. Figure pays US dollars. Coinbase pays USDC, a stablecoin you convert yourself.
Max LTV. Figure allows up to 75 percent, higher than most. Coinbase runs around 75 percent and liquidates at about 86 percent.
Custody. Figure self-custodies through Fireblocks MPC and does not re-lend collateral, but it is not an independent third-party custodian. Coinbase locks cbBTC in the Morpho market (not re-lent there), with the underlying Bitcoin custodied by Coinbase. Read our rehypothecation explainer for why that matters.
On a margin call. Figure gives a cure window with support. Coinbase liquidates automatically on-chain, with no guaranteed grace period.
Who picks which
Lean Figure if you want US dollars, a higher loan-to-value, and the backing of a Nasdaq-listed company with a cure window. Lean Coinbase if you want the lowest available rate and near-instant funding, you are comfortable holding USDC and managing automatic liquidation, and you already keep Bitcoin on Coinbase. Some borrowers use both for different needs.
Coinbase usually has the lower headline rate (recently around 5 to 6 percent variable) versus Figure (around 10 percent and up). But Coinbase's rate floats with no ceiling and pays USDC, while Figure lends US dollars and allows a higher loan-to-value. Compare the all-in cost and what you receive, not just the rate.
What is the main difference between Coinbase and Figure?
Coinbase's loan is a DeFi product: your Bitcoin becomes cbBTC in a Morpho market on Base and you receive USDC, with automatic on-chain liquidation. Figure is a centralized lender run by a Nasdaq-listed company that lends US dollars, allows up to 75 percent loan-to-value, and self-custodies collateral through Fireblocks MPC with a cure window before liquidation.
Which is safer, Coinbase or Figure?
Different risks. Figure is a public company and does not re-lend collateral, but it self-custodies through Fireblocks MPC rather than handing collateral to an independent qualified custodian. Coinbase removes single-company lending risk via Morpho but adds smart-contract and oracle risk plus reliance on Coinbase's custody of the Bitcoin backing cbBTC, and liquidates automatically with no grace period.