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.
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.
How we cover each
Read our Coinbase loan review and Strike review for the full detail. To see how Strike's rate sits against the rest of the centralized market, check the BoB Bitcoin Loan Rate Index, and compare every US lender in our main comparison.