Coinbase has officially launched its crypto-backed lending service in the United Kingdom, enabling users to borrow up to $5 million in USDC by using their digital assets as collateral. The service, which went live on April 20, 2026, is powered by the on-chain lending protocol Morpho and operates on Coinbase's Layer 2 network, Base.
The offering allows UK customers to pledge Bitcoin (BTC), Ethereum (ETH), or Coinbase's Wrapped Ethereum (cbETH) as collateral. Once assets are selected, they are transferred into a Morpho smart contract and locked until the loan is repaid. Borrowers can initiate the process directly from the Coinbase app, with USDC funds issued "within seconds" after approval. These funds can be converted to British pounds or transferred elsewhere.
Key features of the loan product include variable interest rates, which are calculated automatically by Morpho and adjust continuously based on market activity and block-by-block conditions on Base. There is no fixed repayment schedule; borrowers can repay partially or in full at any time. Liquidation occurs when the total loan value, including accrued interest, reaches a predefined threshold relative to the collateral value. Coinbase states that users receive email and text alerts prior to any liquidation event.
This UK expansion builds on the successful rollout of a similar service in the United States in January 2025. The U.S. product initially had a borrowing cap of $100,000 and was limited to Bitcoin-backed loans. It has since expanded significantly in both loan size and supported collateral assets, which now include ETH, XRP, DOGE, ADA, and LTC. Coinbase reported that total loan originations through the U.S. product on Morpho had surpassed $2.17 billion in USDC as of April 14, 2026.
The company indicated that additional country rollouts are already in the planning stages, signaling a broader global strategy for its crypto-financial services. This lending expansion coincides with Coinbase's deepening integration of artificial intelligence into its operations. CEO Brian Armstrong has projected a future where AI agents play a central role, both internally and in transacting online. The company has introduced internal AI systems named Fred and Balaji to assist with strategy and idea generation.
