Coinbase Launches USDC Loans for UK Crypto Users

Highlights:

• American crypto exchange Coinbase has rolled out crypto-backed loans for UK-based users.
• The new loan feature allows users to borrow USDC backed by major cryptocurrencies like BTC, ETH, or cbETH.
• Users can send loans to any part of the world at zero cost when settling bills or making real-time payments

America’s cryptocurrency exchange, Coinbase, has introduced a new loan feature for crypto users in the United Kingdom. According to a press release issued by the trading platform on April 20, 2026, the new feature allows users to borrow USD Coin (USDC) backed by their Bitcoin (BTC), Ethereum (ETH), or cbETH. Morpho, an on-chain lending system built on Coinbase’s Base network, is powering the new lending service. Coinbase described the loan feature as very fast. It gives users access to cash in less than a minute, without them needing to sell their cryptocurrencies. 

With the new option, users can take out loans in USDC and send them to any part of the world at zero cost on the supported network. However, fees would apply on the Ethereum network. Users can convert the loans into pounds to handle daily expenditures. Overall, Coinbase’s new loan setup allows users to hold on to their crypto investments while still accessing capital when they need it for immediate spending. 

COINBASE LAUNCHES CRYPTO BACKED LOANS IN UK
@Coinbase has rolled out crypto backed $USDC loans for users in the United Kingdom.

Users can now borrow USDC against Bitcoin $BTC and Ethereum $ETH holdings in under a minute.

The feature allows access to liquidity without selling… pic.twitter.com/pw3Q0Ur3rE

— BSCN (@BSCNews) April 20, 2026

Coinbase Targets UK in Ongoing Expansion Efforts for USDC Loans

The latest rollout forms part of Coinbase’s efforts to expand its presence in the UK. The exchange noted that it wants to become the platform of choice for investing, saving, and even borrowing funds. The effort built on previous steps, including Coinbase’s registration with the Financial Conduct Authority (FCA) in early 2025. The trading platform launched saving features after that, before introducing its decentralized exchange (DEX) trading in April 2026.

Before expanding into the UK, Coinbase launched crypto-backed loans in the United States in January, 2025. Since then, demand for lending services has continued to soar. As of mid-April, 2026, over $2 billion in USDC loans have been issued through the platform using Morpho. Coinbase also noted that it intends to expand access to crypto-backed loans to more countries in the near future.

How Coinbase’s New Loan Feature Operates

UK users can easily access the loan feature directly in the Coinbase app by selecting the “Borrow” option. From there, users can choose the cryptocurrency they want to use as backing for the loan and how much USDC they want to borrow. Bitcoin-backed loans allow users to borrow up to $5 million in USDC, depending on how much BTC they put up as collateral. 

Once Coinbase confirms the loan application, the crypto used for collateral will be moved into a smart contract on Morpho. The trading platform then sends out the loan almost instantly. The requested loan will appear in the user’s Coinbase account, ready to use or convert. The loan does not have a fixed repayment deadline, meaning users can repay loans whenever they choose to do so. However, interest rates are fixed and change constantly based on market activity. The Morpho system is responsible for setting automatic interest rates. 

Crypto-backed loans are now live in the UK.

Start borrowing USDC against BTC, ETH and cbETH.

Unlocking liquidity without having to sell your crypto. pic.twitter.com/rDeGaAUYhl

— Coinbase UK 🛡️ (@coinbaseuk) April 20, 2026

Like all crypto-backed loans, Coinbase warned users about liquidation risks. According to the trading platform, if the loan grows significantly higher than the value of the collateral crypto, the system may be forced to sell some or all of the collateral to repay the loan. A penalty fee also applies in such cases. The collateral will remain locked in the smart contract until the loan is fully repaid.