Coinbase has launched crypto-backed USDC loans for users in the UK, enabling them to borrow against Bitcoin, Ethereum, and cbETH holdings without selling their assets.
According to the official press release, the product is powered by Morpho, an on-chain lending protocol built on Base, and processes loans in under a minute with USDC disbursed directly to the user's Coinbase account.
Users select their collateral asset, specify a borrowing amount, and the collateral is transferred on-chain to a Morpho smart contract. For Bitcoin-backed loans, users can borrow up to USD 5 million in USDC depending on collateral value. Borrowed USDC can be sent globally or converted to GBP within the Coinbase app.
Furthermore, interest rates are variable and calculated automatically by Morpho based on market conditions, adjusting with each block on the Base blockchain. There is no fixed repayment schedule. Coinbase One members additionally earn up to 3.5% APY in USDC rewards on their holdings.
UK expansion and product trajectory
The UK launch follows Coinbase's introduction of crypto-backed loans in the US in January 2025. Total loan originations through Coinbase on Morpho had grown to over USD 2.17 billion as of 14 April 2026, according to company information. The UK product represents the first international expansion of the offering, with Coinbase indicating plans to extend access to further countries.
The launch is the latest step in Coinbase's UK product development, following DEX trading in April 2026, savings accounts in November 2025, and successful FCA registration in February 2025. Coinbase describes crypto-backed loans as part of its strategy to build a comprehensive financial application for UK consumers covering investment, financial management, and wealth growth.
Moreover, loan health, APR history, and liquidation thresholds are all visible within the app, with liquidation alerts delivered via email and SMS.
