Cryptocurrency exchange Coinbase hasexpanded its lending servicesto now allow UK customers to borrow USDC stablecoin using their Bitcoin or Ethereum holdings as collateral.
This service operates through Morpho, an open-source lending protocol.Powered by—an Ethereum Layer 2 network backed by Coinbase—to enable Coinbase’s crypto-backed loans. UK users can stake cryptocurrency as collateral to obtain USDC liquidity without selling their digital assets.
Loan limits vary by collateral type. Bitcoin holders can receive up to $5 million in USDC loans, while Ethereum collateral loans have a maximum limit of $1 million, depending on the collateral amount.
Coinbase launched its cryptocurrency-backed loan service in the United States in January 2025 and stated that, as of April 14, it had facilitated $2.17 billion in USDC loans.
This loan product further expands Coinbase’s service offerings in the UK. The exchange recently launched its decentralized exchange trading service for UK users last week, following the introduction of a savings account in November 2025. All these services were rolled out after Coinbase obtained registration with the UK’s Financial Conduct Authority (FCA) in February 2025, enabling the company to expand its regulated services in the UK market.
Coinbase UK CEO said in a statement: "Crypto-backed loans are part of Coinbase’s commitment to building the UK’s first financial app. We aim to be the best platform for UK consumers to invest in, manage, and grow their funds."
Coinbase (COIN) fell about 1% on the Nasdaq today, with its current price above $204, but has risen nearly 17% over the past week, driven by the broader recovery in cryptocurrencies and the stock market.