In brief
- Coinbase launched crypto-backed USDC lending for U.K. users on Monday.
- Bitcoin holders can borrow up to $5 million in USDC, with Ethereum-backed loans capped at $1 million.
- The service uses Morpho, an open-source lending protocol on Ethereum layer-2 network, Base.
Crypto exchange Coinbase has expanded its lending service, now allowing U.K. customers to borrow USDC stablecoins using their Bitcoin or Ethereum holdings as collateral.
The service operates through Morpho, an open-source lending protocol on Base—the Coinbase-backed Ethereum layer-2 network—that powers Coinbase’s crypto-backed loans. U.K. users can pledge cryptocurrency as collateral to access USDC liquidity without liquidating their digital assets.
Borrowing limits vary by collateral type. Bitcoin holders can access up to $5 million in USDC, while Ethereum-backed loans top out at $1 million, depending on the amount pledged.
Coinbase first launched the crypto-backed loan service in the United States in January 2025, and said it has facilitated $2.17 billion USDC in loan originations as of April 14.
The lending product adds to Coinbase’s growing U.K. service portfolio. The exchange introduced decentralized exchange trading for U.K. users just last week, and previously launched savings accounts in November 2025. These offerings followed Coinbase’s February 2025 FCA registration, which enabled the firm to expand regulated services in the market.
“Crypto-backed loans are part of Coinbase’s efforts to build the number one financial app in the U.K.,” said Coinbase U.K. CEO, in a statement. “We want to be the best place for U.K. consumers to invest, manage and grow their money.”
Coinbase (COIN) shares on the Nasdaq are down about 1% on the day at a current price above $204, though they’re up nearly 17% over the last week amid broader crypto and stock market recoveries.
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