Coinbase Brings USDC Lending to UK Backed by BTC and ETH

Crypto News

Coinbase

crypto-backed USDC loans for users in the United Kingdom on Monday, allowing borrowers to access liquidity by pledging Bitcoin, Ethereum, or Coinbase Wrapped Staked Ether as collateral.

The product runs through Morpho, an open-source lending protocol on Base, the Coinbase-backed Ethereum layer-2 network. Interest rates are variable and determined by Morpho based on live market conditions on Base, meaning borrowing costs can shift at any time. There is no fixed repayment schedule, but borrowers face liquidation if their loan-to-value ratio crosses defined thresholds.

Borrowing limits depend on the collateral type.

-backed loans allow users to access up to $5 million in USDC.

-backed loans are capped at $1 million. The amount a borrower can access within those limits also depends on the value of the collateral they pledge.

Coinbase first launched this lending product in the U.S. in January 2025 and extended it to most U.S. states, excluding New York, in November of that year. As of April 14, the product has facilitated $2.17 billion in total

loan originations since its initial launch.

The U.K. rollout adds lending to a product lineup that already includes savings accounts, launched in November 2025, and decentralized exchange trading, added in the U.K. just last week. Those expansions followed Coinbase's registration with the Financial Conduct Authority in February 2025, which allowed the firm to offer crypto and fiat services to retail and institutional clients in the country.