The Coinbase has expanded its crypto backed lending product to the United Kingdom, allowing users to borrow up to $5 million in USDC by pledging digital assets such as Bitcoin, Ethereum, and cbETH as collateral. The loans are issued through Morpho on the Base blockchain and are fully overcollateralized, with assets locked in smart contracts until repayment.
Instant Settlement and Dynamic Interest Rate Model
Coinbase stated that borrowing can be accessed through the “Borrow” feature in its app, where users select collateral and receive USDC within seconds. Loans can then be converted into British pounds or transferred externally. Interest rates are variable and recalculated automatically by Morpho based on market activity, updating with each block on the Base Layer 2 network.
There is no fixed repayment schedule, and borrowers can repay at any time. However, liquidation occurs once the loan value plus interest exceeds a set threshold relative to collateral, with users receiving alerts before liquidation events.
Expansion Follows Strong US Demand and Rising Onchain Lending
The UK rollout follows the earlier US launch of Coinbase’s lending system in 2025, which has already processed over $2.17 billion in USDC loan originations as of April 2026. The service initially supported only Bitcoin collateral but has since expanded to multiple assets, reflecting growing demand for decentralized, onchain lending infrastructure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.