Building on its success in the US, cryptocurrency exchange Coinbase has launched cryptocurrency-backed USDC loans for UK residents, using Bitcoin (BTC) and Ethereum (ETH) as collateral. This expands the platform’s growing range of financial services in the region.
Cryptocurrency-Backed Loans Arrive in the UK
On Monday, Coinbase, the largest cryptocurrency exchange in the US, announced the expansion of its Borrow product to UK residents, offering them greater liquidity without the need to sell their cryptocurrencies.
UK customers can now instantly apply for USDC loans using Bitcoin, Ethereum, and Coinbase Wrapped Staked Ether (cbETH) as collateral, thanks to Morpho, an on-chain protocol of the Base network.
It’s worth noting that Coinbase users will be able to request loans of up to $5 million in USDC secured by Bitcoin, depending on the amount of BTC provided as collateral, as explained in the announcement.
The cryptocurrency exchange stated that the collateral will be locked in a Morpho smart contract until the loan is fully repaid, without a fixed repayment schedule. However, the asset will be liquidated to settle the loan if the loan-to-value ratio exceeds a certain limit, and Morpho will charge a liquidation penalty.
According to Monday’s announcement, this launch expands access to the platform’s cryptocurrency-secured lending service, which has seen multimillion-dollar demand since its launch in the United States last year.
Offering access to cryptocurrency-secured loans in the UK is the first step in Coinbase’s ongoing expansion efforts, 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 loans originated by Coinbase on the Morpho platform exceeding $2.17 billion as of April 14, 2026. Coinbase plans to continue expanding access to cryptocurrency-secured loans to more countries soon.
This also represents another step in Coinbase’s efforts to broaden its range of financial products in the country, following its successful certification as a cryptocurrency service provider by the Financial Conduct Authority (FCA) in February 2025. The platform also launched UK savings accounts and DEX trading in November 2025 and April 2026, respectively.
Coinbase’s Expansion Continues
Coinbase’s latest launch reinforces its effort to expand cryptocurrency-secured lending to the traditional financial sector. As reported by Bitcoinist, the platform and Better Home & Finance have launched a joint home financing product that allows potential homebuyers to use their cryptocurrencies as collateral to fund the down payment on a loan guaranteed by Fannie Mae.
According to the announcement, the product aims to create a “direct path from digital wealth to homeownership,” allowing users to use Bitcoin and USDC held in a Coinbase account as collateral to obtain a separate loan for the down payment.
Earlier this month, the exchange also reached a crucial milestone in the United States, after receiving an important approval that could open the doors to a wider market. On April 2nd, Coinbase received conditional approval from the Office of the Comptroller of the Currency (OCC), the country’s main banking regulator, to incorporate Coinbase National Trust Company.
Although the company will not become a commercial bank, accept retail deposits, or participate in the fractional-reserve banking system, the platform noted that the conditional approval represents an important step toward becoming a federally regulated cryptocurrency custodian, as it will allow Coinbase to “build the next chapter of finance,” driven by regulatory confidence.