Bitcoin Loan Comparison

Coinbase vs. Unchained

Coinbase charges a variable 5.1%+ APR with a 1%–2% processing fee using custodial (cbBTC on Morpho / Base). Unchained charges 14.18% APR with a 2% origination fee using collaborative multisig (2-of-3). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Coinbase: 2026-08-28; Unchained: 2026-05-14.

How do Coinbase and Unchained compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, Coinbase is 5.1%+ variable APR and Unchained is 14.18% APR. Unchained: 12-month loan with 2% origination included in APR. Because at least one price is variable or account-tier dependent, the comparison is an estimate rather than a rate winner.

Coinbase charges a processing fee of 2% on the first $250K drawn (1% above) that is added to the loan principal and itself accrues interest, and Unchained's published APR already includes 2% origination fee.

From a custody perspective, Unchained presents lower counterparty risk with its collaborative multisig (2-of-3) model.

Coinbase vs. Unchained: Feature-by-Feature Comparison

Coinbase

Unchained

Interest Rate (APR)

5.1%+ variable

14.18%

Pricing Basis

Flat rate

12-month commercial loan

Fees / Charges

2% processing fee

2% origination fee

Max Starting LTV

75%Coinbase

50%

Margin Call Threshold

None — direct liquidation

67% LTVUnchained

Liquidation Threshold

86% LTVCoinbase

83% LTV

Margin Call Window

No margin-call window

24 hoursUnchained

Custody Model

Custodial (cbBTC on Morpho / Base)

Collaborative multisig (2-of-3)Unchained

Rehypothecation

Interest Payment

Capitalized

Monthly

Minimum Loan

NoneCoinbase

$150,000

Cost on a $250,000 Loan: Coinbase vs. Unchained

To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. Coinbase pricing varies by account; Unchained pricing varies by 12-month commercial loan. Actual offers can differ when those inputs change.

Loan Size	Coinbase APR	Unchained APR	Coinbase Total Year-1 Cost	Unchained Total Year-1 Cost	Savings
$250,000	5.1%+ variable	14.18%	$18,341	$35,450	Estimate only

Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Coinbase: 2% processing fee. Unchained: 2% origination fee — already included in APR. Variable or account-tier pricing remains an estimate and is not awarded a winner. Terms checked individually — Coinbase: 2026-08-28; Unchained: 2026-05-14.

Custody and Collateral Security

Coinbase and Unchained take fundamentally different approaches to collateral custody. Coinbase uses custodial (cbBTC on Morpho / Base). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action. Unchained uses collaborative multisig (2-of-3). Multiple key holders must coordinate to move funds, reducing single-point-of-failure risk but still requiring trust in the key coordination process.

Coinbase: High (Custodial)

•Custodial (cbBTC on Morpho / Base)
•Rehypothecation: No
•Interest capitalized (compounding)
•Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest.

Unchained: Medium (Multisig)

•Collaborative multisig (2-of-3)
•Rehypothecation: No
•Monthly interest payments
•Commercial/institutional only since Jan 2024.

Margin Call and Liquidation: Coinbase vs. Unchained

Coinbase has no mandatory margin-call step; positions liquidate automatically at 86% LTV. Unchained triggers margin calls at 67% LTV and liquidates at 83% LTV. Unchained gives borrowers 24 hours to respond to a margin call. Coinbase has no mandatory margin-call step.

Threshold	Coinbase	Unchained
Max Starting LTV	75%	50%
Margin Call	None — direct liquidation	67% LTV
Margin Call Window	No margin-call window	24 hours
Liquidation	86% LTV	83% LTV

Safety Buffer at Each Lender's Maximum Starting LTV

This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. Coinbase: 11.0 percentage point modeled buffer between maximum starting LTV (75%) and liquidation (86% LTV). Unchained: 33.0 percentage point modeled buffer between maximum starting LTV (50%) and liquidation (83% LTV). Unchained provides a wider safety margin.

Which is better: Coinbase or Unchained?

Choosing between Coinbase and Unchained requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Coinbase uses custodial (cbBTC on Morpho / Base) with 5.1%+ (variable) APR, while Unchained uses collaborative multisig (2-of-3) with 14.18% APR.

The standardized table shows a first-year estimate, but at least one lender still prices by a variable rate or account tier. Treat the dollar totals as scenario estimates, not a definitive cheaper-lender ranking.

The custody difference is material. Unchained uses collaborative multisig (2-of-3), which means your Bitcoin requires multiple key holders to coordinate, reducing single-point-of-failure risk. Coinbase uses custodial (cbBTC on Morpho / Base). That arrangement adds custody-provider and insolvency risk that a script-enforced DLC avoids.

Coinbase is the better fit for borrowers who need smaller loans or instant access. Unchained is the better fit for borrowers who are borrowing $150,000 or more and want collaborative key control.

Key details to be aware of: Coinbase: Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest. The rate is variable, set by Morpho market utilization, and has spiked above 8% (Aug 2025). Unchained: Commercial/institutional only since Jan 2024. Published pricing is 12% interest, 2% origination, and 14.

Frequently Asked Questions

Is Coinbase or Unchained cheaper for a $250,000 Bitcoin-backed loan?

The standardized $250,000, 50% LTV, 12-month estimate is $18,341 for Coinbase and $35,450 for Unchained. Because at least one rate is variable or account-tier dependent, this is not a definitive cheaper-lender ranking.

How does Coinbase's custody model compare to Unchained?

Coinbase uses custodial (cbBTC on Morpho / Base). Unchained uses collaborative multisig (2-of-3). Unchained presents lower custody risk because your collateral requires coordination among multiple key holders.

What is the minimum loan amount at Coinbase vs Unchained?

Coinbase has no published minimum loan. Unchained's minimum is $150,000. Coinbase is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Coinbase or Unchained?

Coinbase has no formal margin-call threshold and liquidates automatically at 86% LTV. Unchained issues a margin call at 67% LTV with a 24-hour response window and liquidates at 83% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 36 points at Coinbase and 33 points at Unchained.

Should I use Coinbase or Unchained for a Bitcoin-backed loan?

It depends on your priorities. Coinbase (5.1%+ (variable) APR, custodial (cbBTC on Morpho / Base), no minimum) is better for borrowers who value custodial (cbBTC on Morpho / Base) and need smaller loan access. Unchained (14.18% APR, collaborative multisig (2-of-3), min $150,000) is better for borrowers who value collaborative multisig (2-of-3) and prefer this platform's lending structure. Use the rate table and cost comparison above to model your specific scenario.

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Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

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