Coinbase is extending its DeFi Mullet service to Brazil, enabling users to trade tens of thousands of tokens within the familiar Coinbase interface.
Brian Armstrong, co-founder and CEO of Coinbase, commented, “We’re rolling out easy access to DEX trading in Brazil now in the Coinbase app. Our US users have been enjoying this product and are excited to bring it to new markets! Onchain trading is getting more and more accessible.”
The DeFi Mullet service first launched in the US on October 8 to streamline the DeFi experience. Armstrong, at the time, had pledged to expand to other countries and networks.
Crypto community members describe Coinbase’s decision as promising
In its Wednesday press release, Coinbase explained that its DEX integration eliminates the typical DeFi complications and provides a seamless, straightforward path into onchain trading.
The firm also wrote, “Using our DEX integration, users can trade on popular DEXs, like Aerodrome and Uniswap, without leaving the familiar ease of the Coinbase interface. When users submit a trade, DEX aggregators automatically scan the available liquidity across top DEXs to find the best prices.”
Moreover, with a self-custody wallet, people can trade without being charged by the network, while still retaining complete control over their tokens, it added. However, it hasn’t yet shared a date for the Brazil launch.
Aibra, an X user, commented on Coinbase’s decision, expressing approval of its path forward while suggesting more alignment with the Base app is needed. He noted the campaign could have included deposits from a Base app wallet without issue.
Another commenter noted that Coinbase’s development into new markets was encouraging, adding that it shows global ambitions are taking shape. One by the domain name Alex Dulub, remarked, “Great to see this expanding! Every time onchain access reaches a new market, the expectations around reliability and safety rise with it. That is how real adoption compounds.”
Brazil is still to implement a new regulatory framework for crypto assets by February 2026. The country’s central bank rolled out new anti-money laundering (AML) and counter-terrorism financing rules aimed at cracking down on illegal activity. Once enforced, all virtual asset service providers, including custodians and intermediaries, will be required to secure authorization from the central bank to operate their businesses. Crypto providers must also follow strict guidelines on transparency, governance, internal controls, and cybersecurity—similar to those expected of banks.
Despite the regulatory developments, Brazil has become one of the fastest-growing cryptocurrency markets in Latin America, with its adoption rate steadily increasing over the past few years. More than 10% of the country’s population already owns some form of digital asset, according to recent data, a figure above the global average. Interest is soaring as concerns about inflation, currency volatility, and a growing fintech ecosystem make accessing cryptocurrency easier than ever.
The country is evaluating whether to tax international crypto transactions as it prepares to implement the Crypto-Asset Reporting Framework, which is now backed by over 70 nations.
Coinbase’s stock has dropped by over 25% in October
In Q3, Coinbase reported that Base saw growing use across trading, payments, lending, and social platforms, and also introduced Flashblocks for ultra-fast block confirmations of 200ms.
The company is steadily building a Bitcoin treasury, increasing its holdings by 2,772 BTC in the third quarter to a total of 14,548 BTC, currently valued at $1.3 billion. Its net income surged to $432.6 million, more than five times higher than a year ago, as revenue rose 55% to $1.9 billion.
Despite earlier gains, Coinbase stock has fallen 25.2% in the past month to $257.29, trading almost at its 2025 starting level, compared with MARA and Strategy, which are down 33.8% and 35.6%.
On related development, Coinbase has recently expanded its onchain lending platform to accept ether (ETH) as collateral, allowing eligible users to borrow up to $1 million in USDC without needing to sell their cryptocurrency. The loans are provided through the Morpho lending protocol on Base, and Coinbase manages the user interface.
The move comes as the onchain credit market reaches record levels. The largest quarter-end total ever, crypto-collateralized lending soared to $73.6 billion in the third quarter, according to a Galaxy Research report.
ETH is the first of several additional assets that Coinbase says it intends to use as collateral. The company added that it aims to serve long-term holders seeking liquidity for expenses such as down payments or debt refinancing, without creating a taxable event.
“People should be able to access liquidity without needing to sell the assets they believe in,” Ben Shen, senior product director at Coinbase, told The Block. “We’re excited to expand borrowing access to ETH this week, and will be further expanding to many additional assets that one can trade on Coinbase.”
ETH-backed loans utilize wrapped ETH (WETH) as collateral, with support for staked ETH planned for future implementation. “We are also working on rolling out loans against staked ETH assets on Coinbase, which will be converted to cbETH as the underlying collateral token. This will be available soon,” a company spokesperson said.
There is no fixed repayment schedule for loans, as long as borrowers maintain a healthy loan-to-value (LTV) ratio, which helps avoid liquidation.
Borrowers are now able to generate up to a 75% LTV ratio with liquidation triggered at 86% — similar to Coinbase’s BTC-backed product. LTV is a measure of a loan’s size based on the posted collateral’s market value; it increases when the collateral’s value falls or interest accrues, and decreases when the collateral’s value rises or the loan is repaid.
Interest rates are variable and set by supply and demand on Morpho. Loan proceeds cannot be used to trade on Coinbase, as per its terms and conditions.
The onchain loans are available to verified users in the U.S. (excluding New York state), with broader international access planned.
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