Coinbase has officially expanded its crypto-backed loan product to the United Kingdom, giving UK residents the ability to borrow USDC against their Bitcoin, Ether, and Coinbase Wrapped Staked ETH (cbETH) holdings directly from within the Coinbase app.
According to the exchange’s announcement on Monday, the new service lets UK users unlock liquidity against their crypto without actually selling it, and loans can be initiated in under a minute. The borrowed USDC can be sent globally for free or converted into British pounds to cover everyday expenses.
The product is powered by Morpho, an onchain lending protocol built on Coinbase’s Layer 2 network, Base.
How the UK Borrow Product Works
UK customers can access the feature by heading to the menu in the Coinbase app and selecting Borrow. From there, they pick the asset they want to pledge as collateral and enter how much USDC they want to borrow against it.
For BTC-backed loans, UK users can borrow up to $5,000,000 USDC, depending on how much bitcoin they put up as collateral. The pledged crypto is transferred onchain into a Morpho smart contract, and the USDC loan gets disbursed into the user’s Coinbase account within seconds. From there, it can be converted to GBP or transferred out.
Coinbase One members will also earn up to 3.5% APY in USDC rewards, with automatic opt-in unless they choose otherwise.
Variable rates, no fixed repayment schedule
Interest rates on these loans are variable and calculated by Morpho automatically based on market conditions. Because Morpho runs on Base, rates update every few seconds with each new block on the network.
There is no fixed repayment schedule either, meaning borrowers can pay down the loan whenever they want. However, if the loan amount plus accrued interest crosses a certain threshold relative to the value of the collateral, liquidations get triggered. Users receive liquidation alerts both via email and text, and can track loan health, APR history, and thresholds directly from the Borrow section of the app.
Collateral remains locked in the Morpho smart contract until the loan is fully repaid, and a liquidation penalty fee applies if the loan-to-value ratio breaches the liquidation LTV.
Part of Coinbase’s wider UK push
The launch is the latest in a series of UK-focused moves from the exchange, which has said it wants to build the number one financial app in the country. It comes on the heels of Coinbase rolling out DEX trading for UK customers earlier this month in April 2026, its UK savings account launch in November 2025, and its successful FCA registration back in February 2025.
International expansion follows $2.17B US milestone
The UK launch marks the first step in Coinbase’s international rollout of the Borrow product, which first went live for US users in January 2025. Initial traction in the US has been strong, with total loan originations through Coinbase on Morpho crossing $2.17 billion in USDC as of April 14, 2026.
The US version originally allowed customers to borrow up to $100,000 in USDC against bitcoin, and has since been scaled to a $5 million ceiling and expanded to include collateral assets like ETH, XRP, DOGE, ADA, and LTC. It remains available across the United States, with the exception of New York.
Coinbase said it plans to keep expanding access to crypto-backed loans to more countries in the near future.
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