Coinbase has introduced crypto-backed loans in the United Kingdom, allowing users to borrow USD Coin against assets like Bitcoin, Ethereum and Coinbase Wrapped Staked Ether (cbETH). The loans are issued via Morpho on Base.
According to the announcement, users can borrow up to $5 million in USDC depending on the amount of collateral pledged. Interest rates are variable and determined by market conditions on Base, meaning borrowing costs can fluctuate.
There is no fixed repayment schedule, but borrowers face liquidation risk if their loan-to-value ratio crosses certain thresholds.
The rollout builds on Coinbase’s existing lending service in the US, launched in 2025, which allows users in most states (excluding New York) to borrow up to $1 million in USDC using Ether as collateral.
The expansion comes as the Financial Conduct Authority continues shaping a broader crypto regulatory framework, with a consultation launched last week for rules expected to take effect in October 2027. Until then, the UK remains partially regulated, with current oversight focused on financial promotions and Anti-Money Laundering compliance.
The move adds lending to Coinbase’s growing UK product suite while furthering its push to bring consumer financial services onchain.
Coinbase said the UK rollout is part of a broader push to expand its financial product suite in the region, following its registration with the Financial Conduct Authority in 2025.
On Feb. 3, 2025, Coinbase secured FCA approval as a registered crypto service provider, enabling it to offer both crypto and fiat services to retail and institutional clients. The company later expanded its UK offerings in November 2025 with the launch of DEX trading and crypto savings accounts.
The latest lending product also reflects Coinbase’s efforts to bridge crypto-backed financing with traditional use cases. On March 26, the exchange partnered with Better Home & Finance to allow borrowers to use Bitcoin or USD Coin as collateral for loans aimed at funding mortgage down payments.
