Crypto-back loans in the UK: users can now borrow USDC against their crypto holdings

Providing access to crypto-backed loans in the UK is the first step in Coinbase’s ongoing efforts to expand following the launch of this offering in the US in January 2025. Initial interest in the service in the US has been substantial with total loan originations through Coinbase on Morpho growing to over $2.17B USDC as of April 14, 2026. Coinbase plans to continue expanding access to crypto-backed loans in more countries in the near future.

„Coinbase users in the UK can now borrow USDC against their Bitcoin and Ethereum holdings in under a minute. This unlocks more liquidity for users without having to sell their crypto holdings: users can send USDC globally for free, or convert to fiat to cover any of life’s expenses.” – according to a press release. 

Coinbase One members also earn up to 3.5% APY in USDC rewards. The Borrow product is powered by Morpho, an onchain protocol built on Base, and initially supports BTC, ETH, and cbETH.

Providing Onchain Personal Finance to UK Residents

Crypto-backed loans are part of Coinbase’s efforts to build the number one financial app in the UK. „We want to be the best place for UK consumers to invest, manage and grow their money. It is also the latest milestone for Coinbase in the United Kingdom, and follows the recent launch of DEX trading in April 2026,  savings accounts in the UK in November 2025, and Coinbase’s successful FCA registration in February 2025.” – the company said.

Getting Started

Users based in the UK can borrow USDC in under a minute:

. To access crypto-backed loans, navigate to the menu within your Coinbase app, and select Borrow. Once there, choose the asset you want to use as collateral and enter the amount of USDC you want to borrow against. For BTC-backed loans, you can borrow up to $5,000,000 USDC depending on how much bitcoin you have to pledge as collateral. 

. The amount you choose to pledge as collateral will be transferred onchain to a Morpho smart contract. Morpho will then disburse the USDC loan, which you will see in your Coinbase account within seconds, and can easily convert to GBP. 

Product Details:

. You can easily manage your loan in the Borrow section of the app, where you can view your loan health, APR history, liquidation alerts (which are also triggered to email and text), and helpful FAQs.

. Interest rates are variable and calculated automatically by Morpho based on market conditions – such that it varies every few seconds with each block creation on the Base blockchain.

. There is no fixed repayment schedule and users will always have the flexibility to choose when to pay down their loan.

. If the amount of your loan, including accrued interest, reaches a certain threshold relative to the value of your collateral, liquidations are triggered. You can monitor your loan directly from your Coinbase app, and the threshold will be displayed prior to you confirming the loan.

Collateral will be locked in a Morpho smart contract until the loan is fully repaid. If the loan-to-value ratio of the loan exceeds the liquidation loan-to-value, your collateral will be liquidated to repay the loans and the Morpho protocol will charge a liquidation penalty fee.

USDC can be sent for zero fees on all supported networks except Ethereum.  All stablecoins come with risks.

Learn more about crypto-backed loans at coinbase.com/borrow.