Coinbase has expanded its onchain loans product beyond BTC and ETH, adding XRP, ADA, DOGE, and LTC as eligible collateral. According to the published details, most U.S. customers can use the service now, with New York excluded. For the newly added assets, users can borrow up to $100,000 in USDC without selling their tokens.
The update broadens access to onchain liquidity for holders of several large-cap altcoins. Until now, the product had been limited to Bitcoin and Ethereum. That made the use case fairly narrow. With more assets supported, Coinbase is giving users another way to keep their market exposure while drawing stablecoin liquidity from existing holdings.
Collateral terms differ sharply from BTC and ETH
Coinbase says the product runs on the Base network and uses the Morpho protocol. Instead of relying on bank-style credit checks, the system determines borrowing capacity from the onchain value of the collateral deposited. The table included in the source shows that BTC and ETH carry a 75% loan-to-value ratio and an 86% liquidation threshold. Maximum borrowing is listed at $5,000,000 for BTC and $1,000,000 for ETH.
The newly supported assets come with tighter limits. XRP, ADA, DOGE, and LTC are grouped under a 49% loan-to-value ratio, a 62.5% liquidation threshold, and a maximum loan size of $100,000. Those lower parameters suggest a more conservative risk setting for assets that can swing harder than Bitcoin and Ethereum.
USDC liquidity without selling tokens
The product is designed for users who want cash access while keeping their crypto positions intact. Once collateral is deposited into the smart contract, borrowers can receive USDC quickly. Coinbase frames this as a more transparent structure because the lending rules and collateral positions sit onchain rather than inside a closed approval system.
One practical point stands out: users do not need to exit their holdings to access funds. The source also notes that, in many cases, borrowing against crypto may not be treated the same way as selling at a profit for tax purposes. At the same time, the report explicitly states that it is not financial or tax advice.
Price declines remain the main risk
Access to liquidity does not remove market risk. If the price of pledged assets falls quickly, positions can hit liquidation levels and collateral may be lost. That matters even more for the newly added coins, which have been assigned lower borrowing ratios and stricter thresholds than BTC and ETH.
The expansion shows Coinbase pushing its onchain lending product beyond the two largest crypto assets and into a wider set of liquid tokens. The core use case stays the same: keep the asset, borrow stablecoins against it, and manage the position closely. The source mentions expectations for additional collateral types in the future, but it does not provide a formal Coinbase timeline.