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; Nexo is a centralized revolving credit line. The right one depends on what you value: a low floating rate with verifiable on-chain collateral, or an always-open line you can draw and repay at will.
This is an independent comparison, not advice. Coinbase figures are a snapshot because its rate floats; Nexo figures are verified weekly.
Dimension
Coinbase (DeFi)
Nexo (CeFi)
Model
DeFi (Morpho on Base)
CeFi (a company)
You receive
USDC, a stablecoin
Cash or stablecoin
Rate
~5 to 6% variable, no ceiling
~18.9%, revolving credit line
Max LTV
~75% (liquidates at 86%)
50%
Custody
cbBTC in a Morpho market; BTC backing custodied by Coinbase
Coinbase data is a snapshot (its rate floats); Nexo figures are verified weekly. Neither is a recommendation.
The core difference
Nexo is an open revolving credit line with no fixed term: you draw what you need, pay interest on the drawn balance, and repay and redraw freely. The catch is that Nexo rehypothecates, meaning it may re-lend your pledged Bitcoin while your loan is open. Coinbase converts your Bitcoin to cbBTC, supplies it to a Morpho market on Base, and lends you USDC, with the cbBTC not re-lent inside that market and liquidation enforced automatically by code. Our CeFi vs DeFi guide covers why that distinction drives everything else.
Where they differ
Rate. Coinbase is far cheaper on the headline number (recently around 5 to 6 percent, variable) than Nexo (near 18.9 percent). Coinbase's can rise with the market; Nexo's is set by the platform.
Structure. Nexo is an open revolving line with no maturity. Coinbase is an open position you manage on-chain. Neither forces a fixed payoff date.
Custody and rehypothecation. This is the key split. Nexo rehypothecates, re-lending your collateral. Coinbase does not re-lend the cbBTC in the Morpho market, though the underlying Bitcoin is custodied by Coinbase.
What you receive. Both can pay a stablecoin; Nexo can also pay cash. Coinbase pays USDC, which you convert yourself.
On a margin call. Both liquidate automatically. Coinbase does so on-chain at about 86 percent loan-to-value; Nexo liquidates partially against your line.
Who picks which
Lean Coinbase if you want a far lower rate, verifiable on-chain collateral that is not re-lent in the market, and you are comfortable holding USDC and managing automatic liquidation. Lean Nexo only if an always-open revolving line is worth both the much higher rate and the rehypothecation of your collateral. Read the rehypothecation terms before you borrow.
Coinbase is usually far cheaper on rate: its variable rate has recently sat around 5 to 6 percent, while Nexo's credit line prices near 18.9 percent. Coinbase's rate floats with no ceiling and pays USDC, while Nexo is an always-open revolving line. On cost, Coinbase leads clearly; the question is whether Nexo's open line is worth the gap.
What is the main difference between Coinbase and Nexo?
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. Nexo is a centralized revolving credit line with no fixed term that you draw and repay at will, but it rehypothecates, meaning it may re-lend your pledged Bitcoin while the loan is open.
Which is safer, Coinbase or Nexo?
Both carry real risks. Nexo rehypothecates collateral, the practice that sank several lenders in 2022, and it prices high. Coinbase removes single-company lending risk via Morpho and does not re-lend the cbBTC in the market, but it adds smart-contract and oracle risk plus reliance on Coinbase's custody of the Bitcoin backing cbBTC, and liquidates automatically with no grace period.