Users in the UK may now borrow USDC against Bitcoin, Ether, and Coinbase Wrapped Staked Ether (cbETH) via the cryptocurrency exchange Coinbase’s new crypto-backed USDC loans. Morpho, a lending protocol on Base, is utilized to issue the loans.
A user may get a Bitcoin-backed loan of up to $5 million USDC (or more, depending on the amount of collateral they pledge), as stated in a statement made on Monday. According to Coinbase, interest rates are subject to change and determined by Morpho depending on Base market circumstances. This means that borrowing fees might fluctuate often.
There is no set payback timetable, according to the exchange, but borrowers run the danger of liquidation if their loan-to-value ratio is too high.
Coinbase has introduced a crypto-backed lending service to the US market since 2025, and this launch is an expansion of that service. The initiative, which allows customers to borrow up to $1 million in USDC using Ether as collateral, was released on November 21 by Coinbase throughout all US states except New York.
Regulatory Development in the UK
Developments in UK regulation are also occurring at the same time as the growth. The Financial Conduct Authority (FCA) began a consultation on a future cryptocurrency regime on Wednesday. This regime is anticipated to be implemented in October 2027 and will address topics such as stablecoins, trading platforms, custody, and staking. Financial promotion and Anti-Money Laundering (AML) regulations are the primary areas of regulation in the United Kingdom (UK) until the regime is completely implemented.
As part of its ongoing endeavor to channel consumer financial activities via onchain infrastructure, Coinbase has expanded its product stack in the United Kingdom with the addition of loans. After registering with the Financial Conduct Authority (FCA) in 2025, Coinbase said that the UK launch was a step toward expanding its financial product line in the nation.
Coinbase was authorized to provide crypto and fiat services to institutional and retail clients by the FCA on February 3, 2025. Coinbase introduced DEX trading and savings accounts to the UK market in November 2025.
