Coinbase Global Inc. (Nasdaq: COIN) announced on April 20, 2026, the expansion of its crypto-backed loan product to the United Kingdom, bringing its proven on-chain credit solution to a new regulated market. UK users can now borrow USDC instantly by pledging Bitcoin (BTC), Ether (ETH), or Coinbase Wrapped Staked ETH (cbETH) as collateral, with borrowing limits up to $5 million depending on pledged assets.
US Success Validation: Over $2.17 Billion in Originations
Coinbase first launched the crypto-backed loan service in the United States in January 2025, powered by the decentralized lending protocol Morpho on the Base chain. As of April 14, 2026, total loan originations via Coinbase on Morpho had surpassed $2.17 billion USDC, underscoring robust borrower demand. The company stated: "The initial interest in the US has been substantial, providing a strong foundation for geographic expansion." This performance validates the viability of on-chain credit alternatives, allowing users to unlock liquidity without selling their crypto holdings.
UK Service Features: Speed, Flexibility, and Competitive Rates
UK customers can access liquidity in less than one minute through the Coinbase app, with funds transferable globally or convertible to fiat. Loan interest rates (APR) adjust dynamically based on market activity on Base, and there are no fixed repayment schedules, offering borrowers full flexibility. Coinbase One subscribers additionally earn up to 3.5% APY on USDC rewards, enhancing the product's utility. The platform transparently displays key metrics such as loan health factor, APR changes, and liquidation thresholds before confirmation.
Morpho Protocol: Decentralized Lending Infrastructure
The loan product is built entirely on the open-source Morpho protocol running on Base, Coinbase's Ethereum Layer-2 network. This architecture enables fully automated, trustless lending without traditional credit checks. Currently accepting BTC, ETH, and cbETH as collateral, Coinbase has indicated plans to expand eligible assets. The company further noted it has integrated XRP, DOGE, ADA, and LTC as collateral for loans up to $100,000 USDC, accelerating adoption among a wider user base.
Global Expansion Roadmap
Coinbase emphasized: "We intend to continue expanding access to crypto-backed loans in additional countries in the near future." The UK launch serves as a template for replicating the successful US model in other regulated markets. By merging traditional collateralized lending concepts with blockchain's instantaneous settlement and transparency, Coinbase is redefining liquidity access for crypto holders. Analysts see this as a potential new revenue driver for the exchange, especially as institutional adoption of DeFi infrastructure grows.