Coinbase Expands UK Footprint with Crypto-Backed USDC Lending

Coinbase has officially introduced crypto-backed USDC loans to its United Kingdom user base, enabling borrowers to leverage Bitcoin (BTC), Ether (ETH), and Coinbase Wrapped Staked Ether (cbETH) as collateral. The product is deployed via Morpho, a lending protocol on the Base network, marking a significant step in the exchange's effort to route consumer finance through on-chain infrastructure. Under the new terms, users can secure up to $5 million in USDC for Bitcoin-backed loans, subject to the amount of collateral pledged. Interest rates are variable and determined by Morpho based on prevailing market conditions on Base. While the product offers flexibility with no fixed repayment schedule, Coinbase warned that borrowers face liquidation risks if loan-to-value ratios exceed specific thresholds. This expansion follows a similar rollout in the United States that began in late 2025. The move comes as the UK Financial Conduct Authority (FCA) conducts consultations for a comprehensive crypto regulatory regime expected to take effect in October 2027. This future framework is intended to cover stablecoins, custody, staking, and trading platforms. Coinbase has been aggressively scaling its UK offerings since securing FCA registration as a crypto service provider in 2025. In addition to the new lending product, the exchange has already launched DEX trading and savings accounts in the region. Furthermore, the company is exploring traditional finance integrations, including a partnership with Better Home & Finance to allow crypto collateral for mortgage down payments.