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; Strike is a centralized lender (CeFi) that folds borrowing into a Bitcoin app millions already use. The right one depends on what you value: the lowest floating rate, or fee-free US dollars inside an app with a cure window.
This is an independent comparison, not advice. Coinbase figures are a snapshot because its rate floats; Strike figures are verified weekly.
Dimension
Coinbase (DeFi)
Strike (CeFi)
Model
DeFi (Morpho on Base)
CeFi (a company)
You receive
USDC, a stablecoin
US dollars
Rate
~5 to 6% variable, no ceiling
7.49 to 11.25%, no origination or liquidation fee
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); Strike figures are verified weekly. Neither is a recommendation.
The core difference
Strike holds your Bitcoin in its own pool and lends you US dollars in-app, with a 72-hour cure window if your loan-to-value climbs too high. 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 company you trust; 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 Strike (from about 7.49 percent). Strike's rate is steadier and carries no separate fees.
What you receive. Strike pays US dollars. Coinbase pays USDC, a stablecoin you convert yourself.
Custody. Strike holds collateral in its own pool and does not re-lend it, publishing proof of reserves. Coinbase locks cbBTC in the Morpho market (not re-lent there), but the underlying Bitcoin is custodied by Coinbase. Read our rehypothecation explainer for why that matters.
On a margin call. Strike gives a 72-hour cure window and liquidates only partially, with support. Coinbase liquidates automatically on-chain at about 86 percent loan-to-value, with no guaranteed grace period.
Speed. Coinbase funds in about a minute; Strike usually same or next day.
Who picks which
Lean Strike if you want US dollars, no fees beyond interest, one of the more generous cure windows in the market, and borrowing inside an app you already use. 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 Strike (around 7.49 percent and up). But Coinbase's rate floats with no ceiling and pays USDC, while Strike charges no origination, prepayment, or liquidation fee and pays US dollars. Compare the all-in cost and what you receive, not just the rate.
What is the main difference between Coinbase and Strike?
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. Strike is a centralized lender that holds collateral in its own pool, lends US dollars inside the Strike app, charges no fees beyond interest, and gives you a 72-hour cure window before any liquidation.
Which is safer, Coinbase or Strike?
Different risks. Strike concentrates risk in one company and holds collateral in its own pool, but does not re-lend it and gives a 72-hour cure window with human support. 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.