Coinbase Launches Crypto Lending in UK

Coinbase launched its crypto-backed lending service in the United Kingdom on April 20, 2026, enabling users to borrow up to $5 million in USDC stablecoin against holdings of Bitcoin, Ethereum or Coinbase Wrapped Staked ETH as collateral. The offering, accessible directly through the Coinbase app, allows borrowers to unlock liquidity in under a minute without selling their assets, marking the company's latest expansion of onchain financial tools in Europe.

The loans operate via Morpho, an open-source protocol on Base, Coinbase's layer-2 blockchain network. Users select their collateral, specify the desired USDC amount and receive funds almost instantly after approval, with the pledged assets transferred to a Morpho smart contract and locked until repayment. Interest rates vary and adjust automatically based on real-time market conditions with each block on Base. There is no fixed repayment schedule; borrowers can repay partially or fully at any time. To protect lenders, loans are overcollateralized, and liquidation occurs if the loan value, including interest, approaches a set threshold relative to the collateral's worth. Coinbase notifies users via email and text before...