The exchange enables UK users to borrow stablecoins against crypto holdings, marking its first international expansion of the product.
Coinbase has launched crypto-backed lending in the UK, enabling users to borrow USD Coin against their digital asset holdings as it expands further into consumer financial services.
The product allows customers to access loans in USDC by pledging crypto assets including Bitcoin, Ethereum and Coinbase’s staked ETH token, cbETH, as collateral. According to the company, funds can be issued in under a minute and used immediately, either transferred globally or converted into fiat currency.
Coinbase stated that the launch is part of its broader effort to build what it describes as a “number one financial app” for UK consumers, expanding beyond trading into services such as borrowing, saving and payments.
DeFi infrastructure behind the product
The lending service is powered by Morpho, an open-source protocol operating on Base, Coinbase’s layer-2 network.
When a user takes out a loan, their crypto collateral is transferred on-chain into a Morpho smart contract. The protocol then disburses USDC directly to the user’s Coinbase account.
Interest rates are variable and determined algorithmically by the protocol, meaning they can fluctuate in real time depending on market conditions. Coinbase noted that users are not subject to a fixed repayment schedule and can choose when to repay their loan.
As with other crypto-backed lending products, loans are subject to collateral thresholds. If the value of the loan, including accrued interest, approaches a predefined loan-to-value ratio, the position may be liquidated.
In such cases, the pledged crypto assets are sold to repay the outstanding loan, and a liquidation penalty may apply. Coinbase said users are able to monitor their loan health, including thresholds and alerts, within the app.
The company also highlighted that transfer limits and safeguards remain in place across accounts as part of its broader risk controls.
Expansion beyond the US
The UK rollout marks Coinbase’s first international expansion of its crypto-backed lending product, which initially launched in the US in January 2025.
According to the company, total loan originations facilitated through Morpho have exceeded $2.17bn in USDC as of mid-April 2026, indicating early demand for the service.
Coinbase added that it plans to expand access to crypto-backed loans in additional markets, though it did not specify a timeline.
The launch follows a series of recent product developments by Coinbase in the UK, including the rollout of decentralised exchange trading earlier this month and the introduction of savings products in 2025.
The company secured registration with the UK’s Financial Conduct Authority in February 2025, enabling it to offer crypto-related services in the market.
