Coinbase Wrapped BTC (CBBTC) has emerged as a focal point for decentralized finance activity on Base over the past 48 hours, with two significant developments underscoring its expanding role in on-chain lending and risk infrastructure. On July 21, 2026, Morpho Protocol launched its Midnight credit markets on Base with CBBTC/USDC as the inaugural market pair. The protocol introduces fixed-rate, fixed-term borrowing mechanics—a departure from traditional variable-rate lending—and selected CBBTC as the primary Bitcoin collateral asset for the initial offering. This positioning reflects growing confidence in wrapped Bitcoin products as DeFi-native collateral and signals that CBBTC has achieved sufficient liquidity and trust to anchor a new credit market structure.