## Coinbase Launches Crypto-Backed USDC Lending for UK Users — Up to $5M on Bitcoin, $1M on Ethereum via Morpho on Base
Coinbase has rolled out a crypto-backed lending service for UK users, allowing them to borrow USDC stablecoins against their Bitcoin or Ethereum holdings without selling their assets. The service, launched Monday, leverages Morpho, an open-source lending protocol built on Base — Coinbase’s own Ethereum layer-2 network. This marks a significant expansion of Coinbase’s lending capabilities into the UK market, offering a new liquidity channel for digital asset holders.

Borrowing limits are tied to the collateral type. Bitcoin holders can access up to $5 million in USDC, while Ethereum-backed loans are capped at $1 million, depending on the amount pledged. The loans are denominated in USDC, a stablecoin pegged to the US dollar, and are processed through Morpho’s decentralized protocol on Base. This structure allows users to maintain exposure to their crypto assets while unlocking stablecoin liquidity for other uses, such as trading, spending, or reinvestment.

The move signals Coinbase’s push to deepen its financial services in the UK, a key market for crypto adoption. By integrating Morpho’s open-source infrastructure, Coinbase avoids building proprietary lending rails, instead tapping into DeFi liquidity. However, the service carries inherent risks: collateral value volatility, liquidation triggers, and reliance on the Base network’s security and uptime. UK users now face a choice between traditional crypto lending platforms and Coinbase’s newly accessible, exchange-backed option — one that ties borrowing capacity directly to market movements in Bitcoin and Ethereum prices.
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- **Source**: ZeroHedge
- **Sector**: The Vault
- **Tags**: Coinbase, UK, crypto lending, Bitcoin, Ethereum
- **Credibility**: unverified
- **Published**: 2026-04-22 08:52:33
- **ID**: 75724
- **URL**: https://whisperx.ai/en/intel/75724