Coinbase launches UK USDC loans backed by BTC, ETH, cbETH
Coinbase launched USDC loans in the UK secured by Bitcoin, Ether and cbETH via Morpho on Base, offering Bitcoin-backed loans up to $5 million with variable interest.
Coinbase has launched USDC loans for customers in the United Kingdom, accepting Bitcoin (BTC), Ether (ETH) and Coinbase Wrapped Staked Ether (cbETH) as collateral. Loans are originated through the Morpho lending protocol on the Base network. Bitcoin-backed borrowers can access up to $5 million in USDC, subject to the amount and quality of collateral posted.
Interest rates are variable and set by Morpho based on market conditions on Base. The product does not include a fixed repayment schedule. Borrowers face the risk of liquidation if their loan-to-value ratio exceeds thresholds enforced by the lending protocol.
The UK roll-out follows a U.S. launch that began in 2025. On Nov. 21, 2025, Coinbase made a similar product available across U.S. states, excluding New York, allowing users to borrow up to $1 million in USDC with Ether as collateral.
Coinbase secured registration with the Financial Conduct Authority on Feb. 3, 2025, enabling the company to offer crypto and fiat services to retail and institutional clients in the U.K. The firm added decentralized exchange trading and savings accounts in the U.K. in Nov. 2025.
The loans use on-chain infrastructure: positions are originated and managed on Base via the Morpho protocol. In late March, Coinbase announced a partnership with Better Home & Finance to permit borrowers to pledge Bitcoin or USDC as collateral for loans intended to fund mortgage down payments.
Regulatory developments in the U.K. could affect how these products operate. The Financial Conduct Authority has launched a consultation on a new crypto regime expected to take effect in October 2027, with proposals covering stablecoins, trading platforms, custody and staking. Until the regime is enacted, U.K. oversight of crypto focuses chiefly on financial promotions and anti-money-laundering rules.
Prospective borrowers should be aware of variable borrowing costs, the lack of a scheduled repayment plan, and the risk of forced liquidation if crypto prices move against collateral or if protocol loan-to-value thresholds are breached.
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