Cryptocurrency exchange Coinbase has made cryptocurrency-backed USDC lending available to UK users, allowing users to borrow USDC in exchange for Bitcoin, Ether and Coinbase Wrapped Staked Ether (cbETH). Loans are made via Morpho, Base’s lending protocol.
According to according to Monday’s announcement, users can borrow up to $5 million in USDC (USDC) using Bitcoin (BTC)-collateralized loans, depending on how much collateral the user pledges. Coinbase says interest rates are variable and set by Morpho based on market conditions on Base, which suggests borrowing costs may change frequently.
The exchange said there is no set repayment schedule, but borrowers are at risk of liquidation if loan-to-value ratios exceed certain thresholds.
The launch expands the cryptocurrency-backed lending service that Coinbase has been making available in the U.S. since 2025. On November 21, Coinbase launched the product in all U.S. states except Up-to-date York, allowing users to borrow up to $1 million in USDC with Ether (ETH) as collateral.
The expansion is also due to ongoing regulatory changes in the UK. On Wednesday, the FCA launched a consultation on the future cryptocurrency regime, which is expected to come into force in October 2027 and cover areas such as stablecoins, trading platforms, custody and staking. Until the system is fully in force, regulations in the UK are only partially in force, with the regulations focusing on financial promotions and anti-money laundering (AML).
The rollout adds lending to Coinbase’s growing suite of products in the UK, while also increasing efforts to drive consumer finance activities through onchain infrastructure.
Source: Coinbase UK
The UK expansion adds loans to a growing product set
Coinbase described the UK launch as part of an effort to build a broader suite of financial products in the country following its registration with the Financial Conduct Authority (FCA) in 2025.
On February 3, 2025, Coinbase gained approval from the FCA as a Registered Crypto Services Provider, allowing it to offer crypto and fiat services to both retail and institutional investors. In November 2025, Coinbase launched DEX trading AND savings accounts in Great Britain.
Related: Coinbase is testing AI agents that appear on Slack and email
The product launch comes as Coinbase explores ways to expand cryptocurrency-backed lending into conventional financial applications.
On March 26, the exchange partnered with Better Home & Finance to allow borrowers to pledge Bitcoin or USDC as collateral for loans used to finance mortgage advances.
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