Coinbase Brings Crypto-Backed Lending to UK, Pledging $5M in USDC
Coinbase has launched crypto-backed USDC loans for users in the United Kingdom, allowing borrowers to pledge Bitcoin, Ethereum, or Coinbase Wrapped Staked Ether as collateral. The product, which runs through Morpho, an open-source lending protocol on Base, allows variable interest rates determined by Morpho based on live market conditions.
Borrowing limits depend on the type of collateral, with Bitcoin-backed loans capped at $5 million in USDC and Ethereum-backed loans limited to $1 million. The value of the collateral pledged also affects the amount a borrower can access.
This expansion follows Coinbase's registration with the Financial Conduct Authority (FCA) in February 2025, allowing the firm to offer crypto and fiat services to retail and institutional clients in the U.K. The launch comes as U.K. crypto regulation advances, with the FCA opening a consultation on a future regulatory regime expected to take effect in October 2027.