Coinbase Expand USDC Borrowing to the UK Against Bitcoin, Ether

• Coinbase has expanded USDC borrowing to the UK, allowing loans of up to $5M against Bitcoin, Ether, and cbETH.
• The UK launch follows Coinbase US Morpho loans in January 2025, with $2.17B originations as of April 2026.
• Coinbase could expand crypto-backed loans to more countries, signaling a broader global rollout.

On April 20, 2026, Coinbase announced the expansion of its crypto-backed lending service to the United Kingdom (UK). The service allows users to instantly borrow up to $5 million in USDC against crypto assets such as Bitcoin (BTC), Ethereum (ETH), and Coinbase Wrapped Staked Ether (cbETH) via Morpho on Base. 

Loans are overcollateralized with assets locked on-chain, feature variable interest rates recalculated per block, and offer instant disbursements to Coinbase accounts, convertible to Great British Pounds (GBP).

Coinbase Launches USDC Borrowing Service in the UK

On April 20, 2026, Coinbase officially expanded its crypto-backed USDC borrowing service to eligible customers in the United Kingdom (UK). UK users can now borrow up to $5M in USDC by using Bitcoin (BTC), Ethereum (ETH), or cbETH (Coinbase-wrapped staked ETH) as collateral. 

Coinbase stated that “Interest rates are variable, calculated automatically by Morpho based on market conditions. Rates update every few seconds with each block on the Base blockchain.”

The service is powered by the Morpho on-chain lending protocol on the Base blockchain and is accessible directly through the “Borrow” section of the Coinbase app. 

The process is seamless, allowing users to select collateral and receive USDC loans in seconds. Assets are locked in a Morpho smart contract until repayment, with overcollateralization, flexible terms, and liquidation alerts.

Strong US Loan Growth Drives UK Expansion

Coinbase’s crypto-backed USDC borrowing service, launched in the US in January 2025, experienced rapid adoption and scale. Initially offered only against BTC with a $100,000 limit excluding New York, the service quickly expanded to include ETH, XRP, DOGE, ADA, and LTC as collateral, with borrowing limits raised to $5M against BTC.

By April 14, 2026, just 15 months after launch, total USDC loan originations through the U.S. product on Morpho had surpassed $2.17B. This explosive growth demonstrates massive user demand for fast, regulated on-chain borrowing that provides liquidity without forcing users to sell their crypto holdings.

What’s the Impact on the Crypto Market as Global Expansion Could Follow?

Coinbase’s move signals that this is only the beginning as both the original U.S. announcement and today’s UK blog post explicitly state plans to expand crypto-backed loans to more assets and additional countries.  

If it’s global expansion across Europe, Asia, and beyond in the coming months after the UK success, it would represent one of the largest bridges yet between centralized platforms and decentralized finance, potentially adding tens of billions in new originations and reinforcing Coinbase’s position as the “Everything Exchange” for global crypto liquidity.

Therefore, this could boost on-chain activity and Base ecosystem growth, reduce selling pressure on BTC and ETH, accelerate DeFi adoption by enabling simpler access, and expand the crypto lending market while strengthening crypto’s role as financial infrastructure. 

In the longer term, wider availability could shift user behavior as holders gain a compliant way to access liquidity without selling their crypto, while also normalizing on-chain lending for everyday investors.

Related: Cardano Price Prediction: ADA Drops To $0.2760 Despite Coinbase Loan Integration