Coinbase rolls out UK crypto-backed loans as FCA shapes rules

Coinbase launched USDC loans for UK users backed by BTC, ETH and cbETH, expanding its borrowing product as Britain moves toward a crypto regulatory regime.

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 product is powered by Morpho, an open-source 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. 

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