Coinbase Launches Crypto-Backed USDC Loans For UK Users In Latest Expansion

Building on its US success, crypto trade Coinbase has rolled out crypto-backed USDC loans for UK residents, utilizing Bitcoin (BTC) and Ethereum (ETH) as collateral. This expands the trade’s rising suite of economic companies within the area.

Crypto-Backed Loans Cross The Pond

On Monday, Coinbase, the most important crypto trade within the US, announced that it has expanded its Borrow product to UK residents, unlocking extra liquidity for customers with out having to promote their crypto holdings.

UK clients can now immediately borrow USDC utilizing their Bitcoin, Ethereum, and Coinbase Wrapped Staked Ether (cbETH) as collateral, powered by Morpho, an on-chain protocol on the Base community.

Notably, Coinbase customers will be capable to borrow as much as $5 million in USDC for Bitcoin-backed loans, relying on the quantity of BTC pledged as collateral, the announcement defined.

The crypto trade acknowledged that collateral can be locked in a Morpho good contract till the mortgage is absolutely repaid, and there’s no mounted reimbursement schedule. However, it will likely be liquidated to repay the mortgage if the loan-to-value ratio exceeds a sure threshold, and Morpho will cost a liquidation penalty price.

According to the Monday announcement, the launch expands entry to the trade’s crypto-backed lending service, which has seen multi-billion-dollar demand since launch within the US final yr.

Providing entry to crypto-backed loans within the UK is step one in Coinbase’s ongoing efforts to broaden following the launch of this providing within the US in January 2025. Initial curiosity within the service within the US has been substantial with whole mortgage originations by Coinbase on Morpho rising to over $2.17B USDC as of April 14, 2026. Coinbase plans to proceed increasing entry to crypto-backed loans in additional international locations within the close to future.

It additionally marks one other step in Coinbase’s efforts to construct a broader lineup of economic merchandise within the nation, following its profitable registration as a crypto service supplier by the Financial Conduct Authority (FCA) in February 2025. The trade additionally launched financial savings accounts within the UK and DEX buying and selling in November 2025 and April 2026, respectively.

Coinbase Expansion Continues

Coinbase’s newest launch additionally follows the corporate’s latest push to broaden crypto-backed lending in conventional finance use instances. As reported by Bitcoinist, the trade and Better Home & Finance launched a joint mortgage product for potential house consumers to make use of their crypto holdings as collateral to fund their down funds on a Fannie Mae‑backed mortgage.

Per the announcement, the product goals to create a “direct pathway from digital wealth to homeownership” by permitting customers to pledge Bitcoin and USDC held in a Coinbase account to safe a separate mortgage for his or her down cost.

Earlier this month, the trade additionally achieved a vital milestone within the US after receiving key approval that will unlock a broader marketplace for the corporate. On April 2, Coinbase secured conditional approval from the Office of the Comptroller of the Currency (OCC), the principle banking regulator, to constitution Coinbase National Trust Company.

Although the corporate won’t turn into a business financial institution and won’t take retail deposits or have interaction in fractional reserve banking, the trade famous the conditional approval marked a serious step towards changing into a federally regulated crypto custodian, as it’ll permit Coinbase to “construct the following chapter of finance,” boosted by the regulatory confidence.