Coinbase Launches Crypto-Backed Loans for UK Clients

Coinbase users in the United Kingdom can now borrow USDC against their Bitcoin and Ethereum holdings in under a minute.

This provides increased liquidity without requiring the sale of crypto assets, allowing users to send USDC globally for free or convert it to fiat currency. Coinbase One members also earn up to 3.5% APY in USDC rewards. The service is powered by the Morpho protocol on Base and initially supports BTC, ETH, and cbETH.

Crypto-backed lending is part of Coinbase's strategy to establish itself as the leading financial app in the UK. This follows recent milestones including the launch of DEX trading in April 2026, savings accounts in November 2025, and the company's FCA registration in February 2025.

The UK launch marks an expansion of the service first introduced in the United States in January 2025. Demand there has been significant, with total loan originations via Coinbase on Morpho surpassing $2.17 billion USDC as of April 14, 2026. Coinbase intends to expand access to crypto-backed loans in additional countries soon.

To initiate a loan, users select the Borrow option in the Coinbase app, choose their collateral asset, and specify the loan amount. For Bitcoin-backed loans, borrowing limits extend to $5 million USDC based on collateral value. Collateral is transferred to a Morpho smart contract, and the loan is disbursed nearly instantly, with funds easily convertible to GBP.

Loan management is handled within the app's Borrow section, which provides details on loan health, APR history, and liquidation alerts. Interest rates are variable, adjusting dynamically with market conditions on the Base blockchain. There is no fixed repayment schedule, offering users flexibility.

Liquidation occurs if the loan value, including accrued interest, reaches a predefined threshold relative to the collateral's value. Users can monitor this threshold directly in the app, which is displayed before loan confirmation.