Coinbase Launches Crypto-Backed USDC Loans for UK Users via Morpho on Base
Coinbase Introduces Crypto-Backed Loans in the UK
Coinbase has launched crypto-backed USDC loans for users in the UK. This service allows users to borrow against their Bitcoin, Ethereum, and cbETH holdings without selling their assets. The product is powered by Morpho, an on-chain lending protocol built on Base.
How the Loan Process Works
Users select their preferred collateral asset and specify the borrowing amount. The collateral is transferred on-chain to a Morpho smart contract. For Bitcoin-backed loans, users can borrow up to USD 5 million in USDC, depending on the collateral value. Loans are processed in under a minute, with USDC disbursed directly to the user's Coinbase account.
- Borrow against Bitcoin, Ethereum, or cbETH
- USDC can be sent globally or converted to GBP
- No fixed repayment schedule
Interest Rates and Rewards
Interest rates are variable and automatically calculated by Morpho based on market conditions, adjusting with each block on the Base blockchain. Coinbase One members can earn up to 3.5% APY in USDC rewards on their holdings.
UK Expansion and Product Development
This UK launch follows Coinbase's introduction of crypto-backed loans in the US in January 2025. As of April 2026, total loan originations through Coinbase on Morpho exceeded USD 2.17 billion. The UK offering marks the first international expansion, with plans for further countries in the future.
Coinbase's UK product development has included DEX trading, savings accounts, and FCA registration. Crypto-backed loans are part of Coinbase's broader strategy to provide comprehensive financial services for UK consumers.
