Bitcoin-backed loans on Coinbase have surpassed $1 billion in collateral, marking a notable milestone in the cryptocurrency lending market. Since January 2025, approximately $450 million in active loans have been issued against Bitcoin collateral as holders increasingly opt to borrow rather than sell amid Bitcoin's approach to new all-time highs. This trend reflects growing institutional interest in leveraging Bitcoin assets. Coinbase CEO Brian Armstrong highlighted that on-chain borrowing and lending mechanisms are functioning effectively. Additionally, alternative collateral types such as BEAM are being used to facilitate loans, with $1.16 million in USDC loans reported. The broader context includes a rise in U.S. credit card debt by $300 billion over three years, underscoring the appeal of borrowing against appreciating assets like Bitcoin. Platforms like Milo Credit promote borrowing against Bitcoin without triggering tax events or forfeiting potential gains. Discussions around long-duration debt combined with Bitcoin and incentive tokens like $TAO suggest ongoing innovation in crypto-backed financial products.