Coinbase expands USDC borrowing to UK, allowing loans against bitcoin, ether
Coinbase's facility allows UK users to borrow up to $5 million in USDC against bitcoin, ether, and cbETH via Morpho on Base.
Coinbase has launched its USDC borrowing service in the United Kingdom, enabling users to take loans against their cryptocurrency holdings. The facility allows UK customers to borrow up to $5 million in USDC stablecoin by using bitcoin, ether, and cbETH as collateral. The service operates through Morpho, a decentralized lending protocol built on Coinbase's Base blockchain network.
This expansion marks Coinbase's continued effort to diversify its revenue streams beyond traditional spot trading. The exchange has been actively developing lending and borrowing products as part of its broader institutional and retail service offerings. USDC, co-issued by Coinbase through its Centre consortium with Circle, serves as the primary lending currency for the facility.
The launch comes as cryptocurrency lending services gain traction in traditional financial markets, with institutions and retail investors seeking ways to unlock liquidity from their digital asset holdings without selling them. The UK expansion demonstrates growing regulatory acceptance of crypto-backed lending products in major financial jurisdictions. The integration with Morpho on Base also highlights the growing utility of Coinbase's layer-2 blockchain solution.
Market observers will be monitoring adoption rates of the service and whether Coinbase plans similar expansions to other European markets. The success of this facility could influence other major exchanges to develop comparable lending products for international markets.
Source: The Block
