TLDR
- Coinbase now lets UK users borrow USDC with bitcoin, ether, and cbETH as collateral.
- Loans are powered by Morpho on Base and usually settle in under one minute.
- UK users can borrow up to $5 million in USDC through the Coinbase app.
- Interest rates are variable and update with each new block on Base.
- Coinbase said U.S. loan originations on Morpho topped $2.17 billion by April 14, 2026.
Coinbase has expanded its USDC borrowing service to the United Kingdom. UK users can now borrow against bitcoin, ether, and cbETH without selling those assets. The service runs through Morpho on Base, and Coinbase said funds usually arrive in under a minute.
The move adds another product to Coinbase’s UK business. It also extends a lending model that started in the United States in January 2025. Coinbase said the UK launch is the first step in a wider international rollout.
Coinbase brings crypto-backed USDC loans to UK users
Coinbase said UK customers can access the new feature in the “Borrow” section of its app. Users choose a supported asset, set the loan amount, and then submit the request. The pledged crypto is then moved onchain into a Morpho smart contract.
Morpho sends the borrowed USDC to the user’s Coinbase account after the request is processed. Coinbase said the transfer usually happens “within seconds.” Users can then keep the USDC, send it, or convert it into British pounds.
The service starts with bitcoin, ether, and cbETH as collateral options. Coinbase said users can borrow up to $5 million in USDC, based on the amount of crypto they pledge. The company also said the loans are overcollateralized.
Coinbase framed the launch as part of its push to grow in the UK market. The company said it wants to build the leading financial app in the country. The launch follows its FCA registration in February 2025 and savings products in November 2025.
Morpho on Base handles lending terms and loan updates
Coinbase said the borrowing product is powered by Morpho, an onchain lending protocol built on Base. Because the product runs onchain, rates and loan data update continuously. The exchange said interest rates are variable and change with each new block.
That means borrowing costs can move every few seconds. Coinbase said users can track APR history, loan health, and alerts in the app. It also said liquidation warnings are sent by email and text message.
There is no fixed repayment schedule for the loans. Borrowers can repay part or all of the balance when they choose. However, the collateral stays locked in the smart contract until the loan is fully repaid.
Coinbase said liquidation starts when the loan value, including interest, reaches a set level against the collateral value. The threshold is shown before the user confirms the loan. The company also said the Morpho protocol charges a liquidation penalty fee if a loan is liquidated.
UK expansion follows strong growth in the US market
Coinbase launched its onchain crypto-backed loan product in the United States in January 2025. That product first let users borrow up to $100,000 in USDC against bitcoin. The limit has since increased to $5 million.
The U.S. service also expanded beyond bitcoin. Coinbase said it now supports assets including ETH, XRP, DOGE, ADA, and LTC. The company added that the product is available across the United States, except New York.
Coinbase said demand for the product has grown since launch. It reported more than $2.17 billion in total U.S. loan originations through Morpho as of April 14, 2026. That figure was cited as part of the UK launch announcement.
The company said more country launches are planned. For now, the UK is the first market outside the United States to receive the product. Coinbase said the goal is to give users more access to liquidity while keeping their crypto holdings in place.
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