Coinbase launches instant crypto-backed USDC loans in UK

Coinbase now offers UK users instant USDC loans backed by Bitcoin, Ethereum, or cbETH as collateral, with flexible terms and onchain processing. Loans up to £5 million are available via the Coinbase app.

Coinbase has introduced crypto-backed USDC loan services in the United Kingdom, enabling users to instantly borrow USDC by pledging Bitcoin, Ethereum, or Coinbase Wrapped Staked ETH (cbETH) as collateral. The service operates on Coinbase’s Base layer-2 network and leverages the Morpho onchain protocol, ensuring all loans are processed fully on-chain and accessible through the main Coinbase app. Borrowers can access up to £5 million or $5 million in USDC, depending on their collateral value, with variable interest rates and no fixed repayment deadlines. The streamlined process allows loans to be initiated in under a minute, and the borrowed USDC can be converted to British pounds or sent globally. Loans are over-collateralized, typically with an initial loan-to-value ratio of up to 75%, and are managed by smart contracts to reduce liquidation risks. This UK rollout follows Coinbase’s previous launches in the US and other markets, where total loan originations have surpassed $2.17 billion, supporting the company’s strategy to offer integrated financial services and unlock liquidity for crypto holders without asset sales.