Coinbase has launched crypto backed USDC loans for users in the UK, allowing customers to borrow against Bitcoin, Ethereum, and cbETH without selling their holdings.
The product is powered by Morpho on Base, with Coinbase saying loans can be issued in under a minute and used either onchain or converted into fiat for spending.
The move expands a lending product Coinbase first rolled out in the US in January 2025. At launch, the US version let eligible users borrow USDC against Bitcoin through Morpho, with variable rates set by onchain markets rather than a fixed repayment structure.
Coinbase now says total loan originations through Morpho have surpassed $2.17 billion USDC as of April 14, 2026, suggesting solid early traction before the product’s first international expansion.
In the UK, the product initially supports BTC, ETH, and cbETH as collateral, with Bitcoin backed loans available up to $5 million USDC depending on the amount pledged. Coinbase said interest rates are variable, update with Base block production, and there is no fixed repayment schedule, though positions can be liquidated if the loan value rises too far relative to posted collateral.
The launch fits into Coinbase’s broader effort to make the UK a larger part of its consumer finance strategy. Over the past year, the company secured UK VASP registration from the Financial Conduct Authority, launched a GBP savings account with ClearBank, and expanded DEX trading access for British users. The new borrow product adds another piece to that push, this time centered on turning idle crypto balances into usable liquidity.
Coinbase’s borrow product does not rely on a traditional internal loan book. Instead, it routes borrowing through Morpho’s onchain lending infrastructure on Base, giving Coinbase a faster way to scale credit access while leaning on open market liquidity. Morpho has described the Coinbase integration as one of the largest DeFi distribution moves to date.
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