Coinbase has launched crypto-backed USDC loans for customers in the United Kingdom, allowing users to borrow USDC using Bitcoin (BTC), Ether (ETH) and Coinbase Wrapped Staked Ether (cbETH) as collateral. The loans are issued through Morpho, a lending protocol built on the Base network.
Under the UK offering, borrowers can access up to $5 million in USDC for BTC-backed loans, subject to the amount and quality of collateral posted. Interest rates are variable and set by Morpho according to market conditions on Base, so borrowing costs can change frequently. There is no fixed repayment schedule; however, loans are subject to liquidation if loan-to-value (LTV) ratios exceed the protocol’s defined thresholds.
The UK rollout extends a product Coinbase began introducing in the United States in 2025. On Nov. 21, Coinbase expanded its loan product across US states (excluding New York), letting eligible borrowers take up to $1 million in USDC using ETH as collateral.
The launch comes amid an evolving UK regulatory picture. The Financial Conduct Authority (FCA) has opened a consultation on a planned crypto regime targeted for October 2027, which would cover stablecoins, trading platforms, custody and staking. Until that framework is implemented, crypto activity in the UK remains only partially regulated, with current rules focused mainly on financial promotions and anti-money-laundering requirements.
Coinbase presented the new loan product as part of its broader strategy to build a more extensive suite of financial services after securing FCA registration as a crypto service provider in 2025. Since that registration, the firm has added services in the UK including decentralized exchange (DEX) trading and savings accounts. It is also exploring bridging crypto lending and traditional finance: in March, Coinbase partnered with Better Home & Finance to let borrowers pledge Bitcoin or USDC as collateral for loans to fund mortgage down payments.
Adding on-chain lending to its UK offerings furthers Coinbase’s push to route consumer finance activity through blockchain-based infrastructure while expanding the range of products available to its customers.