Coinbase Offers Up to $1 Million Loans Against Staked Ether | No Selling Needed!

On January 23, 2026, Coinbase announced a groundbreaking opportunity for people looking to leverage their staked ether. Users can now borrow up to $1 million without needing to sell their holdings. However, this comes with potential risks that are raising eyebrows in the community.

Loan-to-Value Ratio Sparks Concerns

As per Coinbase's guidelines, borrowers must maintain a loan-to-value ratio below 86% to prevent automatic liquidation and penalties. This is crucial, especially in light of ether's volatility. Commenters highlighted the risk of sharp market fluctuations testing this threshold. One user warned, "The key risk lies in collateral management."

Global Reach: Who Can Participate?

A common query from people outside the U.S. has emerged: "Is this only available in the U.S.?" Currently, specific details on international availability remain unclear, leaving potential borrowers in places like Spain uncertain.

Pros and Cons: Community Opinions

The feedback ranges from excitement to caution. Many see this option as a "genius" move, allowing people to keep their upside exposure while obtaining liquidity. Yet, some highlight significant risks. One individual noted, "Good if you don't want to sell but want the cash. Bad if you can't pay it back."

"Borrowing against staked ETH is kinda genius ngl. Keeps your upside exposure…"

Trading Risk for Liquidity

This new borrowing service appeals to those who want cash without selling their crypto. However, potential borrowers must carefully consider their financial situations and the current market. Interest rates are expected to be steep, which could complicate repayment efforts.

Key Takeaways

• △ Borrowers can access up to $1 million against staked ether.

• ▽ A strict loan-to-value ratio of 86% is enforced to avoid liquidation.

• ※ Users express both excitement and caution regarding potential financial risks.

The service rollout by Coinbase could reshape how people manage their staked assets, particularly in a market where volatility reigns. What are the long-term implications for ether's price if this service catches on?

What Lies Ahead for Coinbase and Borrowers

As more people explore the option of leveraging staked ether, there’s a strong possibility we will see a surge in borrowing activity from Coinbase. Analysts estimate that up to 30% of staked ether could be utilized for loans within the next six months as people look for liquidity without selling. However, sharp market swings could lead to an increase in automatic liquidations, creating a fear loop that might stifle borrowing in the long run. Consequently, if users report high liquidation incidents, it could discourage new participants, driving borrowing rates down and impacting ether's market value significantly.

A Lesson from Early Venture Capital Trends

This scenario is reminiscent of the early venture capital craze during the late 1990s Dot-Com bubble, where companies massively leveraged funding based on speculative growth. Startups took on loans and investments under the presumption that high market valuations would continue indefinitely. In hindsight, many found themselves over-leveraged when the tide turned, leading to steep losses. Just like those companies, today’s borrowers face the risk of overconfidence in a volatile market, underscoring the need for caution amidst opportunity.