Coinbase Now Accepts jitoSOL as USDC Loan Collateral, Up to $100,000

Coinbase cbBTC$63,418.38+0.9% on July 24 added JitoSOL, Jito JTO$0.608+4.9%'s liquid staking token, as eligible collateral for its crypto-backed loan product. Eligible U.S. customers can now borrow up to $100,000 in USDC against their jitoSOL while keeping Jito staking rewards active throughout the loan.

jitoSOL Holders Keep Earning Yield While Borrowing

The defining characteristic of this feature is yield preservation. jitoSOL is a yield-bearing token: its value against native SOL increases as Jito accumulates MEV tips and staking rewards on behalf of depositors. Posting jitoSOL as collateral inside a Morpho lending market does not interrupt that accrual. Borrowers access USDC liquidity while the underlying staking position keeps compounding.

That distinction sets it apart from Coinbase's earlier move: in May 2026, Coinbase added plain SOL as collateral for the same loan product. Native SOL earns nothing while sitting as collateral. jitoSOL does.

This is the first time a major centralized exchange has accepted a Solana liquid staking token as loan collateral.

How the Loan Works via Morpho on Base

The product runs on Morpho, a decentralized lending protocol deployed on Base, Coinbase's Layer-2 network. When a user initiates a loan, jitoSOL moves into a Morpho smart contract on Base; Coinbase manages the cross-chain transfer from the app. Per Coinbase's product documentation, the arrangement is non-custodial: the collateral is held by Morpho's smart contracts, not by Coinbase directly.

Borrow rates start from 5.77%, with a one-time origination fee charged at drawdown and no fixed repayment schedule. Borrowers can repay in full or in part at any time. Collateral positions face automatic liquidation if the loan-to-value ratio reaches 86%, per Coinbase. The cap for Solana ecosystem assets is $100,000 USDC, deposited to the borrower's Coinbase account; it cannot be used to purchase crypto directly within the platform.

Availability is limited to U.S. customers outside New York State.

jitoSOL's $740M Market Cap and the Solana LST Collateral Milestone

Liquid staking tokens already serve as collateral on Solana-native lending protocols. Routing jitoSOL through a large U.S. regulated exchange and into a DeFi protocol at scale is new ground. Coinbase's integration pairs Jito's MEV-enhanced yield with Morpho's lending infrastructure across two blockchains, with Coinbase acting as the interface and compliance layer.

Jito's token carries $740 million in market cap across approximately 190,000 holder addresses as of July 25, per Solana Compass data. Coinbase's loan product has previously drawn deposits using BTC, ETH, and plain SOL as collateral; jitoSOL becomes the first yield-bearing Solana asset added to that lineup.

Morpho Smart Contract, Liquidation, and Liquidity Risks

Coinbase's product documentation discloses three material risks: smart contract vulnerabilities in the Morpho protocol, bad debt if collateral value drops faster than liquidations clear, and liquidity delays if withdrawal demand on the lending vault spikes. Morpho's contracts have undergone third-party security audits, per Coinbase's disclosures.

Collateral can be liquidated without Coinbase intervention once the 86% LTV threshold is breached. Borrowers are responsible for monitoring loan health.