Coinbase announced that users can borrow up to $1 million with their cbETH. This token represents the ETH staked on the platform and does not require destocking or sale.
The feature is now available everywhere in the United States except New York. It provides stakers with flexibility previously unavailable in traditional crypto staking models.
How cbETH liquidity works
The mechanism is simple. Coinbase users deposit cbETH as collateral and can immediately access a line of credit. For example, an investor with $500,000 worth of cbETH could borrow a portion of that value up to the $1 million cap. Interest rates and terms are clearly defined, providing predictability. This reflects trends in decentralized finance where staked assets are increasingly used as collateral for loans and other financial products.
Thus, a real-world scenario illustrates the potential. Imagine a crypto investor with a long-term view on Ethereum who wants to buy a house or invest in a startup. Traditionally, they would have to sell staked ETH, losing rewards and potentially triggering taxable events. Thanks to the liquidity of cbETH, they can borrow against their holdings, maintain their stake position and immediately access the necessary funds. This flexibility is a step towards more convenient participation for traditional investors.
Have you staked your ETH, but need liquidity?
No problem – you can now access up to $1 million in liquidity against your cbETH, without clearing or selling.
Available now in the United States (e.g. NY). pic.twitter.com/WqqaOBUlrS
– Coinbase 🛡️ (@coinbase) January 22, 2026
Staking, once viewed primarily as a passive way to earn yield, is evolving into a more active financial tool. Industry data shows that more than 40% of ETH is staked by the end of 2025, with growing demand for ways to leverage these positions. Additionally, by enabling liquidity of staked ETH, platforms like Coinbase bridge the gap between long-term crypto holding and short-term financial needs.
Learn more about Coinbase
Brian Armstrong, CEO of Coinbase, recently said: “We are witnessing the birth of a new monetary system, the Bitcoin standard.” His statement highlights the growing belief that Bitcoin is evolving beyond a speculative asset into a fundamental financial system. Thus, by providing a decentralized and censorship-resistant alternative to traditional currencies, Bitcoin allows individuals and institutions to transact on a global scale without relying on banks or central authorities.
“We are witnessing the birth of a new monetary system, the Bitcoin standard.” – @brian_armstrong pic.twitter.com/zcrqkGEDp6
– Coinbase 🛡️ (@coinbase) January 21, 2026
Thus, Armstrong’s vision reflects a broader trend in the crypto ecosystem, where adoption is accelerating, payment solutions are expanding, and investors are increasingly viewing Bitcoin as a long-term store of value and unit of account.
Disclaimer
The information provided by Altcoin Buzz does not constitute financial advice. It is intended for educational, entertainment and informational purposes only. Any opinions or strategies shared are those of the editors/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets; therefore, perform thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
