More people are starting to borrow money using cryptocurrency, and Coinbase is now offering this service in the U.K. after successfully launching it in the U.S. This expansion makes it easier to access funds directly on the blockchain and suggests Coinbase plans to grow its lending services internationally.
Key Takeaways:
- Coinbase expanded U.K. access to USDC loans backed by BTC, ETH, and cbETH.
- Morpho strengthens Coinbase’s on-chain lending push as borrower demand stays strong.
- Expansion signals Coinbase aims to bring crypto-backed loans to more markets.
Coinbase Expands Crypto-Backed Lending in UK
Rising U.S. adoption of crypto-backed lending is guiding Coinbase Global Inc. (Nasdaq: COIN) international expansion, as the company announced on April 20 the extension of its borrowing product to the U.K. The rollout introduces a new liquidity option for U.K. users within the Coinbase platform. The move signals increasing demand for on-chain credit solutions that allow access to funds without requiring asset sales.
Coinbase stated:
“UK customers can now instantly borrow USDC at competitive interest rates using their BTC, ETH, or cbETH as collateral, with plans to expand eligible collateral assets in the future.”
The crypto company outlined that users can unlock liquidity in under a minute through its app, then transfer USDC globally or convert funds into fiat for expenses. Coinbase One subscribers can also earn up to 3.5% APY in USDC rewards, reinforcing the product’s utility. The infrastructure is powered by Morpho, an open-source lending protocol operating on Base. At launch, bitcoin ( BTC), ether ( ETH), and Coinbase Wrapped Staked ETH (cbETH) are supported as collateral, with borrowing limits for bitcoin-backed loans reaching as high as $5,000,000, depending on pledged holdings.
US Adoption Drives Coinbase’s Next Growth Phase
The U.K. rollout follows measurable adoption in the United States, where Coinbase initially introduced the service in January 2025. Loan originations through Morpho have already reached a multi-billion USDC scale as of April 14, signaling sustained borrower demand. That performance provides a foundation for geographic expansion while validating the platform’s structure. Within the app, users can monitor loan health, APR changes, and liquidation thresholds, which are disclosed before confirmation. Rates fluctuate dynamically because Morpho adjusts them in response to market activity on Base, while the absence of fixed repayment schedules offers borrowers additional flexibility in managing positions.
Coinbase described its expansion into the U.K. as a natural progression following its success in the United States. The company announced that:
As of April 14, 2026, there’s been significant early demand for the service in the US, with over $2.17 billion USDC in loans originating through Coinbase on Morpho.
Coinbase announced it will soon offer crypto-backed loans in more countries. The company sees the U.K. as its next key market for this service, demonstrating its strategy of bringing successful products to regulated areas and making on-chain financial services more widely available.
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2026-04-20 20:27