Coinbase has launched its cryptocurrency-backed lending service in the United Kingdom, which enables users to borrow up to $5 million in USDC by using their digital assets as collateral.
The company announced on Monday that its UK-based customers can use the service through Morpho on the Base network, which operates as its Layer 2 solution. Users need to secure their loans with assets that exceed the total value of their requested borrowings because the system requires complete overcollateralization of all loans. The platform currently supports Bitcoin, Ethereum, and cbETH as collateral.
The assets become secured through an on-chain transfer to a Morpho smart contract, which will keep the assets frozen until the borrower pays back the loan.
Flexible borrowing with real-time rates
The process begins when users choose an asset supported by the Coinbase app and select their desired USD Coin borrowing amount. The company states that approved funds get issued within seconds, which then get added to the user’s Coinbase account. Borrowers at that point gain the ability to change their borrowed amount into British pounds or send their funds to other locations. Morpho’s automatic interest rate adjustments depend on current market conditions that exist in Base at any given moment.
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The product does not include a fixed repayment schedule. Borrowers have the option to pay back their entire loan amount or make partial payments whenever they choose. The total loan value including interest will reach a specific limit which will lead to liquidation. The company will send users email alerts and text alerts which will inform them about upcoming events before those events occur.
The UK rollout follows the launch of the same service in the United States in January 2025. The company first allowed customers to borrow money between $100000 and $100000 through Bitcoin-backed loans. The company has significantly expanded its product offerings since that time.
The U.S. operations of Coinbase now provide access to more assets which include Ethereum XRP DOGE ADA and LTC and offer increased borrowing capacities. The company reported that total loan originations through its U.S. lending product have exceeded $2.17 billion in USDC as of April 14, 2026. The United Kingdom expansion demonstrates that more customers demand financial services which use crypto-backed financing. Coinbase will introduce its product to more nations while it develops a connection between traditional financial systems and decentralized lending platforms.
