Coinbase Expands USDC Loans to UK Users (4 minute read)
Coinbase brings crypto-backed USDC loans to UK users, letting them borrow up to $5 million against Bitcoin through Morpho on the Base Layer 2 network.
What: Coinbase launched USDC lending in the UK where users can borrow stablecoins against Bitcoin (up to $5 million), Ethereum, or Coinbase Wrapped Staked Ether (up to $1 million each), with loans processed through the Morpho lending protocol on Base.
Why it matters: This expands DeFi lending into a major regulated market following Coinbase's FCA registration, showing how crypto platforms are building traditional financial services on blockchain infrastructure while navigating evolving regulatory frameworks.
Takeaway: UK-based crypto holders can now access liquidity from their holdings without selling, though they should understand the liquidation risks from variable loan-to-value ratios.
Decoder
- USDC: USD Coin, a stablecoin pegged to the US dollar
- LTV: Loan-to-value ratio, the percentage of collateral value that can be borrowed
- cbETH: Coinbase Wrapped Staked Ether, a token representing staked Ethereum on Coinbase
- Morpho: A decentralized lending protocol that optimizes lending rates
- Base: Coinbase's Ethereum Layer 2 blockchain network for cheaper transactions
- FCA: Financial Conduct Authority, the UK's financial services regulator
Original article
Coinbase expanded its crypto-backed USDC lending service to UK users, enabling borrowing of up to $5M against Bitcoin collateral and up to $1M against ETH or cbETH, with loans routed through Morpho on Base. Rates are variable and recalculated each block, with no fixed repayment schedule, though LTV breaches trigger liquidation. The move follows Coinbase's February 2025 FCA registration and complements recent UK product additions including DEX trading and savings accounts, with the company having originated $2.17B in USDC loans as of April 14.