Coinbase has officially launched its crypto-backed lending service in the United Kingdom allowing eligible users to borrow up to $5 million in USDC against their digital assets.
The new offering enables customers to use major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and cbETH as collateral while maintaining ownership of their holdings.
Built on the Morpho protocol via Coinbase’s Base network, the loans are fully overcollateralized and processed through smart contracts. Funds are typically issued within seconds and can be used or converted as needed.
This move expands Coinbase’s lending services and strengthens its presence in the global crypto finance market.
Built on Morpho and Base Network
Coinbase’s new lending service is powered by Morpho, a decentralized lending protocol running on its Layer 2 network called Base. This system uses smart contracts to keep loans safe.
Users must provide more crypto value than the loan they receive, which is called overcollateralization. The deposited assets stay locked on the blockchain until the loan is fully repaid.
Users can easily access this feature through the Coinbase app. They simply choose a supported crypto asset as collateral and select how much USDC they want to borrow. Once approved, the loan is processed quickly, and funds are usually sent to their account within seconds.
Flexible Loans with No Fixed Repayment Schedule
The Coinbase crypto loan service offers flexible repayment options, making it easier for users to manage their borrowing. Borrowers can repay their loans either partially or in full at any time, with no fixed monthly or long-term repayment schedule like traditional loans.
The interest rates are not fixed. Instead, they change based on real-time market conditions and are automatically adjusted by Morpho on the Base network. This means the cost of borrowing can go up or down depending on market activity.
If the value of the borrowed loan becomes too high compared to the collateral, liquidation may occur. However, Coinbase warns users in advance through email and SMS alerts so they can take action before any liquidation happens.
Expansion After Strong U.S. Performance
The UK launch comes after strong success of Coinbase’s lending service in the United States, where it first started in January 2025. At the beginning, users could only borrow up to $100,000 and only Bitcoin was accepted as collateral.
Over time, Coinbase improved the service and added more supported cryptocurrencies, including Ethereum (ETH), XRP, Cardano (ADA), Dogecoin (DOGE), and Litecoin (LTC).
The product quickly gained popularity among users looking for liquidity without selling their crypto holdings. According to Coinbase, total loans issued through the U.S. platform have now crossed $2.17 billion in USDC.
This growth shows a strong demand for crypto-backed borrowing and highlights increasing trust in digital asset lending services.
