Coinbase has rolled out a new crypto-backed lending option for users in the United Kingdom. The platform is now allowing eligible customers to borrow USDC against Bitcoin (BTC) and Ethereum (ETH) holdings in under a minute. The product is designed to give users access to liquidity without forcing them to sell their crypto, with borrowed USDC able to be sent globally for free or converted into fiat for everyday spending.
The platform also said Coinbase One members can earn up to 3.5% APY in USDC rewards through the offering. The launch puts Coinbase more directly into the onchain personal finance space in the UK, where it has been steadily expanding its consumer product stack. In its announcement, the company said crypto-backed loans are part of a broader effort to build what it sees as the number one financial app in the country.
Coinbase pointed to a series of recent UK milestones, including the launch of DEX trading in April 2026, savings accounts in November 2025, and successful FCA registration in February 2025, framing the new lending product as the latest step in that push. The Borrow product is powered by Morpho, an onchain lending protocol built on Base, and initially supports BTC, ETH and cbETH as collateral.
Coinbase said the process is meant to be simple: users open the Coinbase app, navigate to Borrow, choose the asset they want to pledge and enter the amount of USDC they want to receive. For BTC-backed loans, Coinbase says borrowing can go as high as $5,000,000 USDC, depending on the amount of bitcoin pledged. Once collateral is transferred onchain to a Morpho smart contract, the USDC loan is disbursed and appears in the user’s Coinbase account within seconds, after which it can be converted to GBP.
Streamlined User Experience
Coinbase said the lending experience is built to be managed directly inside the app, where users can track loan health, review APR history, receive liquidation alerts and access FAQs. The company noted that interest rates are variable and are calculated automatically by Morpho based on market conditions, updating every few seconds as new blocks are created on Base.
There is no fixed repayment schedule, giving borrowers flexibility over when to pay down the loan. At the same time, Coinbase warned that liquidations can be triggered if the value of the loan plus accrued interest moves too far relative to the collateral, and said the relevant threshold is shown before users confirm the loan.
The UK rollout also marks the next stage in Coinbase’s international expansion for Borrow. The company said the product first launched in the United States in January 2025 and has already seen significant demand there, with total loan originations through Coinbase on Morpho climbing to more than $2.17 billion USDC as of April 14, 2026.
Coinbase said it plans to keep expanding access to crypto-backed loans in additional countries over the near future, suggesting the UK launch may be one of several new market entries to follow. For Coinbase, the appeal of the product is clear: it gives long-term crypto holders a way to tap spending power without exiting their positions, while also keeping the lending process tied to its broader onchain infrastructure strategy.
For UK users, the practical pitch is just as straightforward. Instead of selling Bitcoin or Ethereum when cash is needed, they can now borrow against those holdings, receive USDC quickly and move it into the real world with relatively little friction. Coinbase is betting that a blend of speed, flexibility and onchain plumbing will help deepen its presence in Britain’s increasingly competitive crypto market.
