The Spark Liquidity Layer has allocated 5 million USDC into the cbBTC/USDC Morpho market on the Base platform, aiming to become the primary provider for users seeking crypto-backed loans on Coinbase. This allocation will automatically adjust to meet borrowing demand, utilizing funds from the 2.5 billion USDC reserves on the Mainnet. The initiative is part of a broader effort to enhance on-chain finance, with cbBTC being highlighted as a transformative element in the on-chain economy. Developers have spent two years building the necessary infrastructure, including partnerships with Morpho Labs and Moonwell DeFi, to facilitate Bitcoin borrowing on Coinbase and improve user experience through a smart wallet.