What has Coinbase launched in the UK?

Coinbase has launched crypto-backed USDC loans in the UK, allowing users to borrow stablecoins using Bitcoin, Ethereum, or cbETH as collateral. The product lets users access liquidity without selling their crypto holdings. This expands Coinbase’s lending services beyond the US.

How do Coinbase’s crypto-backed loans work?

Users deposit crypto like BTC or ETH as collateral and receive USDC loans in return. The loans are issued via the Morpho protocol on Coinbase’s Base network. Borrowing limits depend on the value of the collateral provided.

How much can users borrow with this product?

Users can borrow up to $5 million in USDC, depending on how much collateral they lock up. Higher collateral means higher borrowing capacity. This makes the product suitable for both retail and larger investors.

What are the interest rates on these loans?

Interest rates are variable and determined by market conditions on the Morpho protocol. This means borrowing costs can change over time. Users need to monitor rates as they are not fixed.

What are the risks of using crypto-backed loans?

The main risk is liquidation. If the value of the collateral falls and the loan-to-value ratio rises too high, assets can be automatically sold. This can result in losses during volatile market conditions.

Why is Coinbase expanding this product to the UK?

Coinbase is building out its product suite in the UK after securing regulatory approval in 2025. The UK is a key market with growing crypto adoption. The expansion aligns with its strategy to offer more financial services.

How does UK regulation affect this launch?

The Financial Conduct Authority is developing a broader crypto regulatory framework expected by 2027. Current rules focus mainly on AML and promotions. This means the market is still evolving, with more clarity expected ahead.

How does this compare to Coinbase’s US lending product?

Coinbase launched a similar service in the US in 2025, allowing users to borrow USDC using ETH as collateral. The UK version expands collateral options and borrowing limits. It shows the product is scaling internationally.

Coinbase launches UK crypto-backed USDC loan service

Written by Brie CarterPublished Apr. 21 2026Last Updated Apr. 21 2026

Coinbase has launched crypto-backed USDC loans in the United Kingdom, allowing users to borrow against Bitcoin, Ethereum and cbETH.

The loans are issued through Morpho on the Base network, with users able to borrow up to $5 million depending on collateral.

Interest rates are variable and set by market conditions, while borrowers face liquidation risk if collateral values fall below required thresholds.

The rollout expands Coinbase’s lending services beyond the US, where it previously introduced similar products backed by Ether.

The launch comes as the Financial Conduct Authority develops a broader crypto regulatory framework expected to take effect in 2027.

Coinbase has been expanding its UK presence following regulatory approval in 2025, adding services such as decentralised exchange trading and crypto savings products.

The move reflects a broader push to integrate crypto-backed lending into mainstream financial use cases, including partnerships aimed at supporting mortgage financing.

At the time of reporting, Bitcoin price was $76,120.57.