Published on April 13, 2026
Coinbase has rolled out crypto-backed loans in the United Kingdom, giving eligible customers a way to borrow the dollar-pegged stablecoin USD Coin without selling their digital assets. The service allows users to access up to $5 million in USDC by pledging cryptocurrencies such as bitcoin, ether, and Coinbase’s wrapped staked ether (cbETH) as collateral.
The move comes as the UK’s Financial Conduct Authority (FCA) continues to shape rules around crypto services. Firms like Coinbase are trying to offer regulated access to decentralized finance tools through simple user interfaces.
Keith Grose, Senior Country Director for Coinbase UK, said the launch is part of a broader effort to make Coinbase the best place to invest in crypto and manage money in the UK. “That continues today with the launch of Borrow!” Grose said. “UK Coinbase users can now instantly borrow USDC at competitive interest rates using their Bitcoin, ETH or cbETH as collateral.”
Grose added that crypto-backed loans join the company’s recently launched savings account in the UK. “We want to give people more choice about how to manage their finances,” he said.
How the Loans Work
The loans are issued through Morpho, an on-chain lending protocol that runs on Coinbase’s own layer-2 blockchain called Base. Borrowers lock their collateral in smart contracts until they repay the loan.
Interest rates are variable. They change based on market conditions, and there is no fixed repayment schedule. However, borrowers face liquidation risks. If the value of their collateral falls below required levels, the platform can sell it to recover the loan.
A Product First Launched in the US
Coinbase first introduced crypto-backed lending in the United States in 2025. Since then, the company has steadily raised borrowing limits and added support for more types of collateral assets. The UK launch expands that product to European customers for the first time.
Coinbase said the new offering allows users to get cash without selling their crypto holdings. That feature has become popular among investors who want to keep exposure to digital assets while unlocking spending money.
Coinbase’s UK Push: Borrow and Save
The loan product joins a Coinbase Instant Access Savings account already available in the UK. That account pays 3.5% AER and comes with Financial Services Compensation Scheme (FSCS) protection. It is powered by ClearBank.
Taken together, the two products give UK users a choice: borrow against their crypto for lump sums, or save their cash for steady interest.
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