Coinbase Expands Morpho Powered USDC Loans to UK

TLDR

• Coinbase has launched crypto-backed USDC loans for users in the United Kingdom through Morpho on Base.
• UK customers can borrow USDC against Bitcoin, Ethereum, and cbETH without selling their holdings.
• The platform allows loans to be issued in under one minute, and funds can be used onchain or converted to fiat.
• Coinbase offers Bitcoin-backed loans up to $5 million USDC, depending on the collateral pledged.
• Interest rates remain variable and update with Base block production instead of following a fixed schedule.

Coinbase has introduced crypto-backed USDC loans for customers in the United Kingdom. The company allows users to borrow against Bitcoin, Ethereum, and cbETH without selling assets. It powers the product through Morpho on Base and issues loans in under one minute.

Coinbase and Morpho Expand USDC Lending to the UK

Coinbase rolled out the borrowing service after expanding its US product earlier this year. The company routes all loans through Morpho’s onchain lending infrastructure on Base. As a result, users access open market liquidity instead of a traditional internal loan book.

The platform allows customers to borrow USDC against pledged crypto assets. Coinbase said borrowers can use funds onchain or convert them into fiat for spending. The company confirmed that interest rates remain variable and update with Base block production.

Coinbase reported that total loan originations through Morpho exceeded $2.17 billion USDC as of April 14, 2026. The figure reflects activity before the product’s first international launch. Morpho described the integration as “one of the largest DeFi distribution moves to date.”

Bitcoin, Ethereum, and cbETH Back UK Borrowing

The UK version supports Bitcoin, Ethereum, and cbETH as eligible collateral. Coinbase offers Bitcoin-backed loans up to $5 million USDC, depending on pledged assets. The company applies variable interest rates determined by onchain markets.

Borrowers do not face a fixed repayment schedule under the current structure. However, the system can liquidate positions if loan value rises too high against collateral. Coinbase stated that rates adjust automatically with each new Base block.

The company launched its US borrowing product in January 2025. At that time, eligible US customers could borrow USDC against Bitcoin through Morpho. The company structured those loans with variable rates set by onchain supply and demand.

Coinbase said the UK expansion aligns with its broader consumer finance plans. Over the past year, the company secured UK VASP registration from the Financial Conduct Authority. It also introduced a GBP savings account in partnership with ClearBank.

The company expanded decentralized exchange trading access for British customers during the same period. Now, it adds borrowing as another feature for UK users. Coinbase aims to convert idle crypto balances into accessible liquidity.

The product operates fully on Morpho’s decentralized lending framework. Coinbase connects customers directly to liquidity pools on Base. Therefore, the company avoids maintaining its own lending inventory.

Coinbase confirmed that loans can be issued in less than one minute. Users can draw USDC immediately after pledging collateral. The company stated that the process runs entirely through smart contracts on Base.

Coinbase continues to monitor loan originations across supported markets. As of April 14, 2026, total originations surpassed $2.17 billion USDC. The UK launch marks the company’s first expansion of the Morpho-powered borrowing product outside the United States.