Coinbase Launches Crypto-Collateralized USDC Loan Service in the UK

BroadChain has learned that at 20:30 on April 21, according to Bitcoinist, Coinbase, the largest cryptocurrency exchange in the United States, announced the expansion of its lending product "Borrow" to the UK market. This will allow local residents to use Bitcoin, Ethereum, and Coinbase Wrapped Staked ETH as collateral to instantly borrow USDC through the on-chain protocol Morpho on the Base network. According to the announcement, the maximum loan amount for Bitcoin-backed loans can reach $5 million, depending on the value of the collateral. The collateral assets will be locked in Morpho's smart contracts, with no fixed repayment term. However, if the loan-to-value ratio exceeds the threshold, it will trigger liquidation and incur penalties. Since its launch in the United States in January 2025, the service has seen strong demand. As of April 14, 2026, the total loan issuance through Morpho has exceeded 2.17 billion USDC. This expansion is another step by Coinbase in building its financial product portfolio in the UK, following its registration with the UK Financial Conduct Authority in February 2025, the launch of savings accounts in November 2025, and the launch of DEX trading in April 2026. The company has also recently collaborated with the traditional finance sector to launch a joint loan product that allows users to use cryptocurrency as collateral for down payments on home purchases. Additionally, on April 2, it received conditional approval from the U.S. Office of the Comptroller of the Currency, positioning it to potentially become a federally regulated crypto custodian.