Coinbase don launch crypto-backed USDC loans for UK
Coinbase don extend dia crypto-backed USDC loans give people wey dey UK, make dem fit borrow USDC without selling BTC or ETH. Di service dey support BTC, ETH, and cbETH as collateral and e dey run for Morpho for Base network.
Borrowing capacity fit reach up to $5 million USDC for BTC-backed loans, and collateral go dey locked for Morpho smart contract until repayment. Coinbase talk say loans fit open almost immediately, but repayment no get schedule; e fit liquidate if loan-to-value ratio pass threshold, plus one liquidation penalty fee.
Coinbase also yan traction data: total loan originations through Coinbase on Morpho don pass $2.17B USDC as of April 14, 2026, and dem plan to roll out to more countries. Traders suppose watch make USDC on-chain use no increase from collateralized borrowing flows and watch for liquidation-driven volatility wey concern BTC/ETH collateral.
This move build on Coinbase regulatory progress for UK, including dem FCA crypto service provider registration for February 2025.
Bullish
For USDC specifically, Coinbase expansion of crypto-backed USDC loans go UK fit boost stablecoin demand and on-chain use. Faster borrowing access and ability to use BTC/ETH (plus cbETH) as collateral fit increase flow of USDC into DeFi/on-chain usage, supporting USDC demand over time. For short term, liquidation mechanics (LTV thresholds and penalty fees) fit cause periodic volatility for positions and collateral markets, but that no mean say USDC usage go down directly. Balancing both effects, likely impact on USDC na positive: more borrowers go convert pledged collateral to USDC, raising utilization.