Coinbase has rolled out crypto-backed loans in the United Kingdom, allowing users to borrow the dollar-pegged stablecoin USD Coin against their digital asset holdings, as regulatory clarity in the country continues to evolve.
The service enables eligible UK customers to borrow up to $5 million in USDC by pledging cryptocurrencies such as bitcoin, ether and Coinbase’s wrapped staked ether (cbETH) as collateral, the company has said.
In a comment, Keith Grose, Senior Country Director for Coinbase, UK, said:
We are making Coinbase the best place to invest in crypto and manage money in the UK. That continues today with the launch of Borrow!
UK Coinbase users can now instantly borrow USDC at competitive interest rates using their Bitcoin, ETH or cbETH as collateral.
Crypto-backed loans join our recently launched savings account in the UK to give people more choice about how to manage their finances.
In short:
– Borrow: crypto-backed loans let users maintain ownership of their long-term crypto assets while borrowing USDC at competitive rates for everyday spending
– Save: users can get 3.5% AER and FSCS protection with a Coinbase Instant Access Savings account (powered by ClearBank)
Loans are issued via Morpho, an on-chain lending protocol operating on Coinbase’s layer-2 blockchain Base, with collateral locked in smart contracts until repayment.
Interest rates are variable and determined by market conditions, with no fixed repayment schedule, though borrowers face liquidation risks if collateral values fall below required thresholds, the company said.
The UK launch expands a crypto-backed lending product first introduced in the United States in 2025, where Coinbase has steadily increased borrowing limits and added support for more collateral assets.
The move comes as the UK’s Financial Conduct Authority (FCA) continues to shape rules around crypto services, with firms like Coinbase seeking to offer regulated access to decentralized finance tools through simplified user interfaces.
Coinbase said the new offering allows users to access liquidity without selling their crypto holdings, a feature that has gained traction as investors look to retain exposure to digital assets while unlocking cash.
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