Coinbase rolls out UK crypto-backed loans as FCA shapes rules
TL;DR
Coinbase has launched crypto-backed USDC loans for UK users, allowing borrowing against Bitcoin, Ether, and cbETH. Users can borrow up to $5 million, with variable interest rates set by Morpho based on market conditions.
Key points
- Coinbase launched crypto-backed USDC loans in the UK.
- Users can borrow against Bitcoin, Ether, and cbETH.
- Loans can go up to $5 million with variable interest rates.
Mentioned in this story
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Crypto exchange Coinbase has rolled out crypto-backed USDC loans for users in the United Kingdom, allowing users to borrow USDC against Bitcoin, Ether and Coinbase Wrapped Staked Ether (cbETH). The loans are issued through Morpho, a lending protocol on Base.
According to a Monday announcement, users can borrow up to $5 million in USDC (USDC) with Bitcoin (BTC)-backed loans, depending on how much collateral a user pledges. Coinbase said interest rates are variable and set by Morpho based on market conditions on Base, suggesting that borrowing costs can change frequently.
The exchange said there is no fixed repayment schedule, but borrowers face liquidation risk if the loan-to-value ratio exceeds specific thresholds.
The launch expands a crypto-backed lending service that Coinbase has been rolling out in the US since 2025. On Nov. 21, Coinbase launched the product across US states, except New York, allowing users to borrow up to $1 million in USDC with Ether (ETH) as their collateral.
The expansion also comes amid ongoing regulatory developments in the UK. On Wednesday, the FCA launched a consultation for a future crypto regime expected to take effect in October 2027, covering areas like stablecoins, trading platforms, custody and staking. Until the regime comes fully into force, the UK remains only partially regulated, with rules focusing on financial promotions and Anti-Money Laundering (AML).
The rollout adds lending to Coinbase’s growing UK product stack while extending its effort to route consumer finance activity through onchain infrastructure.
Source: Coinbase UK
UK expansion adds lending to growing product stack
Q&A
What are the terms for Coinbase's crypto-backed loans in the UK?
Users can borrow up to $5 million in USDC against their crypto holdings, with variable interest rates and no fixed repayment schedule.
How does the FCA's upcoming regulation affect crypto lending in the UK?
The FCA's future crypto regime, expected to take effect in October 2027, will cover areas like stablecoins and trading platforms, impacting how crypto lending operates.
What collateral can be used for loans on Coinbase in the UK?
Users can use Bitcoin, Ether, and Coinbase Wrapped Staked Ether (cbETH) as collateral for borrowing USDC.
