Crypto exchange Coinbase has launched crypto-backed USDC loans for users in the United Kingdom, letting customers borrow USDC against Bitcoin (BTC), Ether (ETH) and Coinbase Wrapped Staked Ether (cbETH). The loans are issued via Morpho, a lending protocol built on Base.
According to Coinbase, UK users may borrow up to $5 million in USDC for BTC-backed loans, subject to the amount of collateral posted. Interest rates are variable and set by Morpho based on market conditions on Base, meaning borrowing costs can change frequently. There is no fixed repayment schedule, but borrowers face liquidation if loan-to-value ratios exceed defined thresholds.
This UK rollout extends a product Coinbase began introducing across the United States in 2025. On Nov. 21, Coinbase expanded its loan product across US states (excluding New York), allowing borrowers to take up to $1 million in USDC using ETH as collateral.
The expansion arrives amid ongoing regulatory changes in the UK. The Financial Conduct Authority (FCA) recently launched a consultation on a future crypto regime scheduled to take effect in October 2027; the proposed framework would cover stablecoins, trading platforms, custody and staking. Until that regime is implemented, the UK remains only partially regulated, with current rules focusing on financial promotions and anti-money laundering (AML) requirements.
Coinbase framed the UK launch as part of building a broader financial product suite after securing FCA registration as a crypto service provider in 2025. Since then, Coinbase has introduced products in the UK including DEX trading and savings accounts. The company is also exploring ways to extend crypto-backed lending into traditional finance: in March it partnered with Better Home & Finance to allow borrowers to pledge Bitcoin or USDC as collateral for loans used to fund mortgage down payments.
The rollout adds lending to Coinbase’s growing UK product stack and furthers its effort to route consumer finance activity through on-chain infrastructure.