Coinbase Expands Crypto-Backed Lending to UK Users

Coinbase has made significant strides in expanding its reach into the global cryptocurrency market. The company has now launched its crypto-backed lending service in the United Kingdom, allowing users to borrow USDC stablecoin against their Bitcoin and Ethereum holdings.

The launch is a key part of Coinbase's strategy to scale on-chain financial services globally. By offering this type of product, the exchange is positioning itself as a full-stack financial services provider built on blockchain rails. This move is particularly significant in the UK, which has become one of the most active crypto markets globally.

The lending service uses Morpho, an on-chain lending protocol built on Coinbase's layer-2 network, Base. Users can deposit Bitcoin (BTC), Ethereum (ETH), or cbETH as collateral and receive loans in USDC instantly into their accounts. The loan terms are flexible, with no fixed repayment schedules and interest rates that adjust dynamically based on market conditions.