Coinbase has launched crypto-backed USDC loans for users in the United Kingdom, enabling them to borrow USDC against Bitcoin, Ether and Coinbase Wrapped Staked Ether (cbETH). The loans are issued through Morpho, a lending protocol on Base.
According to a Monday announcement, users can borrow up to $5 million in USDC with Bitcoin-backed loans, depending on the amount of collateral pledged.
Coinbase stated that interest rates are variable and set by Morpho based on market conditions on Base, so borrowing costs may change frequently.
Coinbase noted there is no fixed repayment schedule; however, borrowers risk liquidation if the loan-to-value ratio exceeds certain thresholds.
This launch expands Coinbase’s crypto-backed lending service, which has been available in the US since 2025. On November 21, Coinbase introduced the product across US states, except New York, allowing users to borrow up to $1 million in USDC with Ether as collateral.
The expansion coincides with ongoing regulatory developments in the UK. On Wednesday, the FCA launched a consultation for a future crypto regime expected to take effect in October 2027, covering stablecoins, trading platforms, custody, and staking.
Until then, the UK remains only partially regulated, with rules focused on financial promotions and Anti-Money Laundering (AML).
Source: X.com
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