Coinbase Launches Crypto-Backed USDC Loans in the UK

Shweta Chakrawarty

April 20th, 2026

Coinbase debuts USDC loans for UK customers as collateral via Morpho. Discover how the April 2026 launch expands onchain personal finance.

Coinbase Launches Crypto-Backed USDC Loans in the UK

Quick Take

Summary is AI generated, newsroom reviewed.

UK users can now borrow USDC instantly using BTC, ETH, or cbETH as collateral.
The service is powered by the Morpho onchain protocol on Coinbase’s Base network.
Total loan originations through the Morpho-powered product surpassed $2.17 billion.
Borrowers can access up to £5 million with variable rates and no fixed deadlines.

Coinbase has launched crypto-backed loan services in the United Kingdom. Users can now borrow USDC using their crypto holdings as collateral. The new feature allows users to borrow against Bitcoin and Ethereum in under a minute.

COINBASE LAUNCHES CRYPTO BACKED LOANS IN UK
@Coinbase has rolled out crypto backed $USDC loans for users in the United Kingdom.

Users can now borrow USDC against Bitcoin $BTC and Ethereum $ETH holdings in under a minute.

The feature allows access to liquidity without selling… pic.twitter.com/pw3Q0Ur3rE
— BSCN (@BSCNews) April 20, 2026

This means they can access cash without selling their assets. The move marks another step in Coinbase’s push to expand its financial services globally.

Borrow Without Selling Crypto

The main idea is simple. Users can unlock value from their crypto without giving it up. Instead of selling Bitcoin or Ethereum, they can use it as collateral. Once the loan is approved, USDC is sent instantly to the user’s account. From there, they can send it globally for free or convert it into cash. This makes it easier to handle expenses while still holding long-term investments. For many users, this balance is important.

Powered by Onchain Lending

The loan system runs through Morpho, an onchain lending protocol. It works on Base, Coinbase’s blockchain network. Because of this setup, the process is fast and automated. Interest rates adjust in real time based on market conditions. Users can also track their loan health directly in the app. At launch, the service supports BTC, ETH, and cbETH as collateral. Coinbase may add more assets over time.

UK Expansion Builds on US Success

This launch follows Coinbase’s earlier rollout in the United States. Since then, demand has grown quickly. Reports show billions in loan activity already processed. Now, the company is expanding to the UK. It aims to become a full financial platform, not just a trading app. The UK has been a key market for Coinbase. Recent updates include savings products and new trading features. This loan service adds another layer to its offering.

What This Means for Users

Crypto backed loans are becoming more popular. They give users flexibility and access to funds without selling assets. But they also come with risks. If the value of collateral drops too much, liquidation can happen. That means users need to monitor their positions closely. Still, the feature shows how crypto is moving toward everyday finance. Users can now borrow, spend, and manage funds in one place.

For now, Coinbase’s UK launch signals growing adoption. As more users explore these tools, crypto-backed finance may become more common. In the coming months, Coinbase plans to expand this service further. More countries and assets could follow soon.