Coinbase Expands Crypto Loans To XRP ADA DOGE and Litecoin

TLDR

Table of Contents

Coinbase now supports XRP, ADA, DOGE and LTC as loan collateral.
Customers can borrow up to $100,000 in USDC nationwide except New York.
Loans are routed on-chain through the Morpho protocol.
Wrapped tokens may trigger taxable events and liquidation risk.

Coinbase now lets XRP, dogecoin, Cardano’s ADA, and litecoin holders borrow up to $100,000 without selling their crypto. The expanded U.S. crypto-backed lending service allows customers to access USDC loans by using their tokens as collateral, except in New York.

Coinbase Expands Crypto-Backed Lending Service

Coinbase has expanded its U.S. crypto-backed lending service to include XRP, dogecoin, Cardano’s ADA, and litecoin. The move allows more customers to borrow against their holdings without selling their assets.

The company said loans are capped at $100,000 in USDC. The service is available nationwide except in New York. Coinbase routes the loans on-chain through the Morpho protocol.

Coinbase crypto backed loan offerings are expanding. Now you can instantly borrow USDC against your $XRP, DOGE, ADA, and LTC, as well as BTC and ETH 🥳 pic.twitter.com/IDWDjKTTDO
— XRPcryptowolf (@XRPcryptowolf) February 18, 2026

The expansion builds on Coinbase’s existing lending model. Customers pledge eligible crypto assets as collateral. They receive USDC in return, which they can use or transfer.

Coinbase positions the service as a way to access liquidity while keeping long-term exposure to crypto assets. The company has not announced a timeline for adding more tokens.

Loan Structure and On-Chain Process

The loans are issued in USDC, a U.S. dollar-pegged stablecoin. Customers must provide eligible tokens as collateral. Some tokens are converted into wrapped versions before being used in the process.

Wrapped tokens represent crypto assets on compatible blockchain networks. Coinbase uses these versions to interact with the Morpho protocol. Morpho is a decentralized lending platform that operates on-chain.

The use of wrapped tokens may create tax considerations. When assets are converted into wrapped tokens, this action may be treated as a taxable event under certain rules.

Coinbase states that customers should review their tax obligations. The company advises users to consult a tax professional if needed.

Risk of Liquidation and Market Volatility

Crypto-backed loans carry liquidation risk. If the value of the collateral falls below required levels, the collateral may be liquidated. This protects the lender from losses.

Market volatility can affect the value of XRP, ADA, dogecoin, and litecoin. Sharp price declines may increase the risk of liquidation. Customers must monitor their collateral ratios closely.

Coinbase outlines the loan-to-value requirements within its platform. Borrowers can add more collateral to reduce liquidation risk. They can also repay part of the loan.

The company does not guarantee protection from market swings. Borrowers remain responsible for managing their positions.

Access to Liquidity Without Selling Crypto

Coinbase markets the service as a tax-efficient way to access funds. By borrowing instead of selling, holders can avoid realizing capital gains from a sale.

However, tax treatment depends on individual circumstances. Conversion into wrapped tokens may still trigger taxable events. Users must review applicable laws in their jurisdiction.

The expansion increases options for XRP, ADA, dogecoin, and litecoin holders. They can now access up to $100,000 in USDC without selling their assets.

The service reflects ongoing demand for crypto-backed loans in the United States. Coinbase continues to operate the program nationwide, except in New York, under existing regulations.