Coinbase lets U.K. customers borrow USDC against Bitcoin and Ethereum
Coinbase is expanding its U.K. product suite by letting British customers borrow USDC stablecoins using Bitcoin or Ethereum as collateral. The crypto-backed lending service runs via Morpho, an open-source lending protocol on Base — the Coinbase-backed Ethereum layer-2 — which powers Coinbase’s crypto loans.
How it works
- U.K. users can pledge BTC or ETH to access USDC liquidity without selling their crypto holdings.
- Borrowing caps depend on collateral type: BTC-backed loans can reach up to $5 million in USDC, while ETH-backed loans top out at $1 million (actual availability depends on the amount pledged).
Background and scale
- Coinbase first rolled out its crypto-backed loan product in the U.S. in January 2025. The company reports $2.17 billion in USDC loan originations as of April 14.
- The launch builds on Coinbase’s recent U.K. expansion: the exchange gained FCA registration in February 2025, introduced savings accounts in November 2025 and added decentralized exchange trading for U.K. users last week.
Why it matters
- The new lending option gives U.K. customers a way to access fiat-stablecoin liquidity while keeping exposure to crypto upside. However, borrowers still face standard risks associated with crypto-collateralized loans, including margin calls or liquidation if collateral values fall sharply.
Coinbase comment and market reaction
- “Crypto-backed loans are part of Coinbase’s efforts to build the number one financial app in the U.K.,” said Coinbase U.K.’s CEO in a statement. “We want to be the best place for U.K. consumers to invest, manage and grow their money.”
- Coinbase (COIN) stock traded down about 1% on the day at just over $204, though the shares are up roughly 17% over the past week amid broader market recoveries.
This move continues Coinbase’s push to broaden regulated product offerings in the U.K., pairing on-chain lending infrastructure (Morpho on Base) with traditional-exchange distribution.
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