Coinbase Launches Crypto-Backed USDC Loans For UK Users In Latest Expansion

Building on its US success, crypto exchange Coinbase has rolled out crypto-backed USDC loans for UK residents, using Bitcoin (BTC) and Ethereum (ETH) as collateral. This expands the exchange’s growing suite of financial services in the region.

Crypto-Backed Loans Cross The Pond

On Monday, Coinbase, the largest crypto exchange in the US, announced that it has expanded its Borrow product to UK residents, unlocking more liquidity for users without having to sell their crypto holdings.

UK customers can now instantly borrow USDC using their Bitcoin, Ethereum, and Coinbase Wrapped Staked Ether (cbETH) as collateral, powered by Morpho, an on-chain protocol on the Base network.

Notably, Coinbase users will be able to borrow up to $5 million in USDC for Bitcoin-backed loans, depending on the amount of BTC pledged as collateral, the announcement explained.

The crypto exchange stated that collateral will be locked in a Morpho smart contract until the loan is fully repaid, and there is no fixed repayment schedule. However, it will be liquidated to repay the loan if the loan-to-value ratio exceeds a certain threshold, and Morpho will charge a liquidation penalty fee.

According to the Monday announcement, the launch expands access to the exchange’s crypto-backed lending service, which has seen multi-billion-dollar demand since launch in the US last year.

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.

It also marks another step in Coinbase’s efforts to build a broader lineup of financial products in the country, following its successful registration as a crypto service provider by the Financial Conduct Authority (FCA) in February 2025. The exchange also launched savings accounts in the UK and DEX trading in November 2025 and April 2026, respectively.

Coinbase Expansion Continues

Coinbase’s latest launch also follows the company’s recent push to expand crypto-backed lending in traditional finance use cases. As reported by Bitcoinist, the exchange and Better Home & Finance launched a joint mortgage product for prospective home buyers to use their crypto holdings as collateral to fund their down payments on a Fannie Mae‑backed loan.

Per the announcement, the product aims to create a “direct pathway from digital wealth to homeownership” by allowing users to pledge Bitcoin and USDC held in a Coinbase account to secure a separate loan for their down payment.

Earlier this month, the exchange also achieved a crucial milestone in the US after receiving key approval that may unlock a broader market for the company. On April 2, Coinbase secured conditional approval from the Office of the Comptroller of the Currency (OCC), the main banking regulator, to charter Coinbase National Trust Company.

Although the company will not become a commercial bank and will not take retail deposits or engage in fractional reserve banking, the exchange noted the conditional approval marked a major step toward becoming a federally regulated crypto custodian, as it will allow Coinbase to “build the next chapter of finance,” boosted by the regulatory confidence.