Coinbase Exchange Opens USDC Lending in the UK with BTC, ETH As Collateral

Key Insights:

• Coinbase exchange introduced crypto-secured loans in the UK, where customers can borrow instantly by securing the loans with Bitcoin, Ethereum, and cbETH.
• Morpho on Base is a lender of loans with variable rates, no repayment plan, and a max limit of $5 million of BTC-backed loans.
• The COIN stock gained substantially after the recent announcement.

The leading crypto exchange, Coinbase, has launched a crypto lending feature for its customers in the United Kingdom. It allows customers to borrow USDC using their holdings of Bitcoin and Ethereum as collateral, per the Coinbase news update.

The option allows users to get liquidity without having to sell their digital assets.

Coinbase Exchanges Rolls Out Crypto Lending For UK Customers

The new crypto lending product enables eligible customers in the UK to take loans within less than a minute, right in the Coinbase application. It is powered by Morpho, an on-chain lending protocol on Coinbase’s Base. BTC, ETH, and cbETH are supported collateral at launch.

The exchange noted that users are able to borrow up to 5 million USDC in Bitcoin-backed loans, based on the value of collateral pledged. After a loan request is confirmed, the assets of the chosen crypto are sent to an on-chain smart contract.

Then, after a few seconds, USDC will be credited to their Coinbase exchange account. The USDC reserve can then be changed into fiat or exchanged all over the world.

In the Coinbase news, the company has said the offering is part of its overall drive to increase financial services in the UK. The company said that it is working to make crypto-backed loans to create the best financial app in the UK.

The rollout follows several Coinbase‘s recent developments in the region. These include the launch of decentralized exchange trading in April 2026 and savings products introduced in November 2025.

In early 2025, the firm was also registered with the Financial Conduct Authority.

A Closer Look at Coinbase’s Lending Model

The lending model of Coinbase has a variable interest rate, which is calculated algorithmically by Morpho, according to the real-time conditions in the market. Rates are updated frequently with each new block on the Base network.

Contrary to conventional loans, there is no set repayment period. Hence, the user can choose to repay the loan in bits or entirely at his/her own will.

The metrics of loans can be followed by users in the app, such as health ratios, interest rate adjustments, and liquidation thresholds. The risk of liquidation is notified through emails and texts.

When the value of the collateral decreases in relation to the amount of loan outstanding beyond a prescribed limit, then this position can be automatically liquidated.

The introduction of ‘Coinbase Borrow’ in the UK is the next step in its global growth. It was initially launched in January 2025 in the United States.

Total loan lending via Morpho on Coinbase since then has surpassed over $2.17 billion in USDC as of April 14, 2026. It indicates a high demand for crypto-backed credit solutions.

Moreover, Coinbase One members in the UK are also able to earn up to 3.5% annual percentage yield on holdings of USDC, which further incorporates lending and yield-generation functionalities into the platform.

After the announcement, the Coinbase exchange (COIN) stock increased by 1.44% to $209.31 on Monday, April 20.

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