This is the clearest custody contrast in the whole category. Unchained is built around you holding a key (collaborative multisig), so no one can move your Bitcoin alone. Coinbase is built around speed and a low rate, with your Bitcoin wrapped to cbBTC and the backing held by Coinbase. One minimizes custody trust; the other maximizes convenience.
This is an independent comparison, not advice. Coinbase figures are a snapshot because its rate floats; Unchained figures are verified weekly.
The core difference
Unchained holds your Bitcoin in a collaborative multisig vault where you hold one of the keys, so it cannot unilaterally move or lose your collateral, and it lends US dollars with a cure window. Coinbase wraps your Bitcoin to cbBTC, supplies it to a Morpho market on Base, pays USDC, and liquidates automatically on-chain. The trade is stark: Unchained is the most custody-protective model here, and the most expensive; Coinbase is among the cheapest and fastest, but you give up the key. Our CeFi vs DeFi guide covers the wider picture.
Where they differ
- Custody. Unchained: collaborative multisig, you hold a key, no unilateral seizure. Coinbase: cbBTC in a Morpho market, with the underlying Bitcoin custodied by Coinbase. This is the whole point of choosing Unchained.
- Rate. Coinbase is far cheaper on the headline number (around 5 to 6 percent, variable) than Unchained (around 14.18 percent). Unchained's premium buys the custody model.
- What you receive. Unchained pays US dollars. Coinbase pays USDC, a stablecoin you convert yourself.
- On a margin call. Unchained gives you a cure window and human support. Coinbase liquidates automatically at about 86 percent loan-to-value with no grace period.
- Speed and minimums. Coinbase funds near-instantly with no stated minimum; Unchained funds in about two days with a $150,000 minimum, aimed at larger borrowers.
Who picks which
Lean Unchained if keeping control of your Bitcoin through collaborative multisig is the priority and you will pay a higher rate for it, and you want US dollars with a cure window. Lean Coinbase if cost and speed matter most, you are comfortable with cbBTC custody and automatic liquidation, and you already hold Bitcoin on Coinbase.
How we cover each
Read our Coinbase loan review and Unchained review for the full detail. If avoiding any re-lending and keeping a key matters to you, our lenders that do not rehypothecate page is a good next step, and you can compare every US lender in our main comparison.