- Coinbase launches UK crypto loans with fast USDC access service
- Users borrow millions using bitcoin ethereum collateral through Morpho platform
- Flexible repayments and real time rates drive growing crypto lending demand
Borrowing against digital assets is gaining traction in the United Kingdom as Coinbase rolls out its onchain lending service to local users. According to Coinbase, the expansion allows eligible customers to secure loans of up to $5 million in USDC by pledging crypto holdings. This move extends a model that has already seen strong adoption in the United States.
Through integration with Morpho on the Base network, the platform enables users to lock assets directly into smart contracts. Bitcoin, Ethereum, and cbETH serve as the initial collateral options for borrowers. Once pledged, these assets remain onchain until the loan is fully repaid.
Additionally, the borrowing process follows a straightforward structure inside the Coinbase application. Users select their collateral, choose a borrowing amount, and receive USDC within seconds. Funds then appear in their account, where they can convert or transfer them as needed.
Interest rates do not remain fixed and adjust dynamically based on market conditions. Moreover, the system recalculates rates continuously with each block produced on the Base Layer 2 network. This approach reflects real-time demand and supply across the lending market.
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Onchain lending model grows as risk controls and flexibility evolve
Unlike traditional lending systems, the service does not enforce a fixed repayment timeline. Borrowers can reduce or close their positions at any point without penalty. Consequently, this flexibility appeals to users managing volatile crypto portfolios.
However, the structure relies heavily on overcollateralization to manage risk exposure. If the loan value approaches a defined threshold relative to collateral, liquidation may occur. Coinbase addresses this risk by sending alerts through email and text notifications. Besides, the UK rollout builds on earlier developments in the United States. The company first introduced the product in January 2025 with a much lower borrowing cap. Since then, it has expanded both the limit and the range of supported assets.
Ethereum, XRP, Dogecoin, Cardano, and Litecoin have since joined the list in the US market. As a result, the platform now caters to a broader group of crypto holders seeking liquidity without selling assets. Coinbase reported that total loan originations through Morpho exceeded $2.17 billion in USDC by mid-April 2026. This growth highlights increasing demand for decentralized lending tools tied to centralized platforms.
Furthermore, the exchange indicated plans to introduce the service in additional regions. This strategy aligns with ongoing efforts to blend traditional user interfaces with decentralized finance infrastructure. The UK expansion signals continued momentum for crypto-backed lending tied to onchain systems. Coinbase appears focused on scaling access while maintaining automated risk controls.
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