Coinbase just proved that cryptocurrency lending can be as easy as ordering a taxi through an app. The exchange has expanded its cryptocurrency-backed lending service to the UK and is doing so on a grand scale.
Bitcoin as a pledge? Yes, literally
Users in the UK can now borrow up to USD 5 million in the USDC stablecoin by pledging their digital assets via the Morpho protocol running on the Base network. Supported collaterals are currently bitcoin, ethereum and cbETH (wrapped stacked ether from Coinbase). The pledge lands in the Morpho smart contract – safely, transparently, without intermediaries in suits.
Coinbase focuses on simplicity – a few clicks and it’s ready
The interest rate is variable and calculated automatically by Morpho based on market conditions, literally every few seconds, with each new block on the Base L2 network. There is also no fixed repayment schedule, which means full flexibility. You can repay the loan whenever you want. It is worth noting that when the value of the debt together with interest approaches the established threshold in relation to the collateral, liquidation occurs. Coinbase warns about this via email and text message, so you can’t say no one warned you.
From 100 thousand to USD 2.17 billion – the increase speaks for itself
The UK service is an extension of the service that Coinbase launched in the US in January 2025. Initially, the limit was 100,000. USD and only bitcoin was accepted. Today it is USD 5 million and a wide range of assets – ETH, XRP, DOGE, ADA and LTC. Effects? The total value of loans granted by the American product on Morpho exceeded USD 2.17 billion in USDC (as of April 14, 2026). Coinbase announces further geographical expansion and if DeFi on such a scale reaches other countries, banks will have reason to think twice. Their lending processes look like technology from a previous era.
