Coinbase has expanded its lending services to U.K. users, enabling them to borrow USDC stablecoins using their holdings of Bitcoin or Ethereum as collateral. This service is facilitated through Morpho, an open-source lending protocol on Base—an Ethereum layer-2 network backed by Coinbase—which supports crypto-backed loans. U.K. customers can leverage their cryptocurrency investments for USDC liquidity without needing to liquidate them.
The borrowing limits depend on the type of collateral: Bitcoin holders may borrow up to $5 million in USDC, while those using Ethereum as collateral have a maximum limit of $1 million, based on the pledged amount.
Coinbase initially introduced its crypto-backed loan service in the U.S. in January 2025 and has since processed $2.17 billion in USDC loans by April 14. This expansion is part of Coinbase’s broader strategy to enhance its offerings for U.K. users, following the launch of decentralized exchange trading last week and savings accounts in November 2025. These developments were made possible after Coinbase received FCA registration in February 2025.
“Crypto-backed loans are a key component of our mission to become the premier financial app in the U.K.,” stated Coinbase’s U.K. CEO. “Our goal is to be the leading platform for U.K. consumers looking to invest, manage, and grow their finances.”
Coinbase’s stock (COIN) on Nasdaq has fallen roughly 1% today, trading above $204, despite an increase of nearly 17% over the past week amid broader recoveries in the crypto and stock markets.