Coinbase expands USDC borrowing to UK, allowing loans against bitcoin, ether

Coinbase has expanded its crypto-backed lending service to the United Kingdom, allowing users to borrow up to $5 million in USDC against other crypto assets via Morpho on Base, with loans overcollateralized.

The service initially supports collateral in bitcoin, ethereum and cbETH (Coinbase wrapped staked ether), with the pledged assets transferred onchain into a Morpho smart contract until the loan is repaid, the exchange said in a statement on Monday. 

According to the statement, users can access the borrowing feature through the “Borrow” section of the Coinbase app by selecting a collateral asset and specifying the amount of USDC they wish to receive. Morpho then disburses the loan to the user’s Coinbase account “within seconds,” where it can be converted to British pounds or transferred.

Coinbase said interest rates are variable and calculated automatically by Morpho based on market conditions, with rates changing every few seconds per block creation on the Base Layer 2 blockchain. 

There is no fixed repayment schedule, and borrowers can pay down their loan at any time, the exchange noted, adding that liquidation occurs when the loan amount plus accrued interest reaches a specified threshold relative to the collateral's value. Users receive liquidation alerts via email and text message.

The UK launch follows Coinbase's U.S. introduction of onchain crypto-backed loans via Morpho in January 2025. That initial offering allowed customers to borrow up to $100,000 in USDC (now $5 million) using bitcoin as collateral, with the service available across the United States, excluding New York. It has since expanded to other assets, including ETH, XRP, DOGE, ADA, and LTC. 

Coinbase said total loan originations through the U.S. product on Morpho grew to over $2.17 billion in USDC as of April 14, 2026. The exchange plans to expand access to crypto-backed loans to additional countries in the near future, according to the statement.