Coinbase is broadening the scope of its crypto-backed lending product by adding XRP, DOGE, ADA, and LTC as eligible collateral. The move gives users more ways to access liquidity without selling their digital assets, as demand for onchain borrowing tools continues to grow.
According to the company’s Feb. 18 announcement, eligible customers can now instantly borrow up to $100,000 in USDC against holdings of XRP, Dogecoin, Cardano, and Litecoin. The expansion builds on Coinbase’s existing support for BTC and ETH within the same lending framework.
More Assets Become Borrowing Tools
Coinbase CEO Brian Armstrong said on X that the company’s crypto-backed loan offering is expanding, noting that users can now borrow USDC against XRP, DOGE, ADA, and LTC, in addition to BTC and ETH. Coinbase separately promoted the update by emphasizing that users can unlock portfolio value “without giving up” their positions.
The broader significance of the change is clear: assets that many users previously treated only as long-term holdings can now be used as collateral to obtain stablecoin liquidity. In practical terms, this means customers may be able to meet short-term capital needs while maintaining market exposure to the tokens they hold.
Built on Morpho and Base
The product is powered by the Morpho onchain lending protocol on Base, while Coinbase provides the user-facing interface through its platform. That setup allows the company to connect mainstream exchange customers with onchain credit infrastructure in a more accessible format.
This design also highlights a wider trend across the digital asset sector: centralized platforms are increasingly offering simpler front ends for decentralized or onchain financial tools. Rather than requiring users to navigate multiple wallets and protocols directly, exchanges like Coinbase are trying to reduce complexity while preserving access to crypto-native financial products.
Borrowing Activity Has Scaled Quickly
Coinbase said that since the product launched in January, total borrows have reached $1.9 billion. That figure points to strong early traction for crypto-backed lending among users seeking liquidity without triggering a sale of their holdings.
At rollout, the company said customers could borrow up to 5,000,000 USDC against bitcoin and up to 1,000,000 USDC against ethereum, subject to account safeguards and transfer limits. The newly added altcoin collateral comes with a lower ceiling of up to $100,000 in USDC, reflecting a more measured borrowing range for these assets.
Liquidation Threshold and Loan Costs
As with other collateralized crypto lending products, the service carries market risk. Coinbase stated that if a loan’s outstanding balance reaches 86% of the collateral’s market value, the pledged assets may be liquidated to repay the debt and cover a penalty fee. This threshold is important for borrowers because large price swings in crypto markets can quickly affect collateral ratios.
The company also noted that a one-time borrowing charge applies each time funds are drawn, and interest accrues on the full loan balance. For users, that means the convenience of instant liquidity must be weighed against both ongoing financing costs and the possibility of liquidation during periods of volatility.
Availability and Market Expansion
The crypto-backed loan service is currently available across the United States, excluding New York. Coinbase said it plans to expand into additional markets over time, though no further jurisdictions or launch dates were specified in the announcement.
The latest collateral expansion suggests that Coinbase sees continued opportunity in turning idle crypto holdings into productive financial assets. By adding support for XRP, DOGE, ADA, and LTC, the company is broadening the use cases for some of the market’s best-known non-BTC and non-ETH tokens.
More broadly, the development reflects a shift in how crypto platforms are positioning digital assets. Instead of being viewed solely as speculative holdings, they are increasingly being integrated into lending, borrowing, and liquidity management tools. For Coinbase, that means creating more utility inside its ecosystem; for users, it means more options to access capital while staying invested in the market.