Coinbase has launched a new crypto-backed lending service for its United Kingdom customers. The exchange now permits users to borrow USD Coin (USDC) stablecoins by pledging their Bitcoin or Ethereum holdings as collateral.
This service leverages Morpho, an open-source lending protocol operating on Coinbase's Ethereum layer-2 network, Base. The offering allows U.K. users to access liquidity without selling their digital assets.
Loan limits are structured by collateral type. Bitcoin holders can borrow up to $5 million in USDC, while Ethereum-backed loans are capped at $1 million.
Coinbase previously rolled out a similar crypto-backed loan service in the United States in January 2025. As of April 14, that service had facilitated $2.17 billion in loan originations.
The expansion into crypto-backed loans follows recent additions to Coinbase's U.K. portfolio, including decentralized exchange trading and savings accounts. These services were enabled by Coinbase's February 2025 registration with the Financial Conduct Authority (FCA).