Coinbase expands crypto-backed USDC loans to UK users
Crypto exchange Coinbase has issued crypto-backed USDC loans to users in the UK, allowing users to borrow USDC against Bitcoin, Ether and Coinbase Wrapped Staked Ether (cbETH). The loans are issued through Morpho, a lending protocol based on Base.
According to Monday's announcement, users of Bitcoin (BTC)-backed loans can borrow up to $5 million in USDC, depending on how much collateral the user provides. Coinbase points out that interest rates are variable and depending on market conditions on the basis of which Morpho is prepared, loan costs can change frequently.
The exchange said there is no set repayment schedule, but borrowers risk foreclosure if the loan-to-value ratio exceeds certain thresholds.
The launch expands the crypto-backed lending service that Coinbase has been rolling out in the US since 2025. On November 21, Coinbase launched its product in all US states except New York, allowing users to borrow up to $1 million in USDC from Ether (ETH).
The expansion comes amid ongoing regulatory developments in the UK. On Wednesday, the FCA launched a consultation on the crypto regime, which is expected to come into force in October 2027. Until the regime is fully implemented, the UK will remain only partially regulated by laws focusing on financial promotion and anti-money laundering (AML).
The release adds credit to Coinbase's growing portfolio of UK products, extending its efforts to transfer customer financial activity through its onchain infrastructure.
The expansion of the UK will increase the credit for the growing inventory
Coinbase has described the UK launch as part of its efforts to build a broader financial product portfolio in the country, following its registration with the Financial Conduct Authority (FCA) in 2025.
In the year In November 2025, Coinbase launched DEX trading and savings accounts in the UK.
Related: Coinbase is testing AI agents that appear in Slack and email.
The product launch comes as Coinbase looks for ways to extend crypto-backed lending beyond traditional financial use cases.
On March 26, the exchange partnered with Better Homes and Finance to allow borrowers to pledge Bitcoin or USDC as collateral for mortgage loans.
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