Crypto exchange Coinbase has significantly expanded its offerings in the United Kingdom by launching a new lending service that allows customers to borrow USDC stablecoins. This initiative enables users to leverage their Bitcoin or Ethereum holdings as collateral, facilitating access to liquidity without the need to liquidate their assets.
The lending service is powered by Morpho, an open-source lending protocol built on Base, Coinbase’s Ethereum layer-2 network. This innovation allows U.K. users to pledge their cryptocurrency while retaining ownership of their digital assets, thus promoting greater flexibility in managing their investments.
Borrowing limits are determined by the type of collateral provided. Bitcoin holders can secure loans of up to $5 million in USDC, while loans backed by Ethereum can reach a maximum of $1 million, contingent upon the amounts pledged as collateral.
Coinbase originally launched its crypto-backed loan service in the United States in January 2025. By mid-April, the company reported facilitating $2.17 billion in loan originations, a significant milestone that underscores the demand for such financial products.
This latest offering is part of a broader strategy to enhance Coinbase’s service portfolio in the U.K. Just a week prior, the exchange introduced decentralized exchange trading, and in November 2025, it launched savings accounts. These developments followed Coinbase’s registration with the Financial Conduct Authority (FCA) in February 2025, which allowed the company to expand its regulated services within the market.
According to Coinbase U.K. CEO, the launch of crypto-backed loans is a crucial step in the company’s mission to establish itself as the leading financial app in the U.K. The goal is to create an environment where U.K. consumers can efficiently invest, manage, and grow their financial assets.
In market performance news, Coinbase’s shares on the Nasdaq have experienced a slight decline of about 1%, with a current trading price exceeding $204. However, the stock has gained nearly 17% over the past week, aligning with a broader recovery trend in both the cryptocurrency and stock markets.
