Borrow Without Selling: Coinbase Launches Major Lending Update for XRP, DOGE, ADA, and LTC
Coinbase is expanding its lending services to include more altcoins. After the success of its Bitcoin and Ethereum lending programs...
Quick overview
- Coinbase is expanding its lending services to include altcoins like XRP, Dogecoin, Cardano, and Litecoin, allowing users to borrow against these assets.
- Eligible U.S. users can access loans of up to $100,000 in USDC without triggering a taxable event, using their digital assets as collateral.
- The lending service operates on Coinbase's Layer-2 Base network using the Morpho protocol, ensuring transparency and competitive rates.
- This expansion aims to empower retail investors by allowing them to leverage their crypto holdings for real-world expenses without selling their assets.
Coinbase is expanding its lending services to include more altcoins. After the success of its Bitcoin and Ethereum lending programs, which have generated over $1.9 billion in loans, users can now borrow against their XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC) holdings.
This update means investors no longer have to choose between selling their assets for cash or holding them long-term. Coinbase is moving beyond being just an exchange and is becoming a global credit provider.
How the $100,000 Liquidity Feature Works
Eligible U.S. users (excluding New York residents) can now access instant liquidity in the form of the USDC stablecoin. By using their digital assets as collateral, investors can secure loans of up to $100,000 without triggering a taxable event or losing their position in the market.
Key Loan Terms at a Glance:
- Borrow Limit: Up to $100,000 in USDC for altcoins.
- Loan-to-Value (LTV): Up to 49% for XRP, DOGE, ADA, and LTC.
- Liquidation Trigger: If the collateral’s value drops and your LTV reaches 62.5%, automatic liquidation occurs to cover the loan.
- Repayment: No fixed schedule. Settle the balance on your own timeline, as long as your LTV stays healthy.
Powered by Morpho: The DeFi Engine Under the Hood
What makes this product revolutionary is its “CeDeFi” structure. While the user interface is pure Coinbase, the heavy lifting happens on the Base network (Coinbase’s Layer-2) using the Morpho protocol.
When you borrow against your XRP, the assets are converted into cbXRP (Coinbase Wrapped XRP) and moved into an on-chain Morpho smart contract. This provides:
- Unmatched Transparency: All loan terms and collateral statuses are verifiable on the blockchain 24/7.
- Competitive Rates: Competitive Rates: By using Morpho’s decentralized liquidity pools, interest rates are dynamic and often lower than those from traditional banks.
- Institutional Security: Morpho’s code has undergone rigorous third-party auditing and formal verification.
Holding XRP, DOGE, ADA, or LTC?
Now you can unlock the value of your portfolio without giving up your position.
Borrow up to $100k in USDC against your tokens, instantly, without selling.
Available now in the U.S. (ex. NY). pic.twitter.com/Uozxim3t7C
— Coinbase 🛡️ (@coinbase) February 18, 2026
The Altcoin “Unlock”: Why This Matters for the Market
By adding “top-tier” altcoins like ADA and the “people’s coin” DOGE, Coinbase is solving a major pain point for the retail investor.
“No matter what you’re holding, you should be able to leverage your crypto without having to sell,” says Jacob Frantz, Product Lead at Coinbase. “This is an exciting preview to a future where all kinds of tokenized assets can be used to build better financial services.”
| Collateral Type | Max LTV | Liquidation LTV | Max Loan Amount |
| Bitcoin (BTC) | 75% | 86% | $5 Million |
| Ethereum (ETH) | 75% | 86% | $1 Million |
| XRP / DOGE / ADA / LTC | 49% | 62.5% | $100,000 |
This expansion is expected to drive massive demand for these assets as investors realize they can use their “meme coins” or “utility tokens” to fund real-world expenses—like down payments or business expansions—without giving up their long-term upside.
Risk Checklist: Important Points to Consider
While the prospect of “instant cash” is tempting, professional analysts urge caution. The 2026 market remains volatile, and a sudden “flash crash” can trigger liquidations.
- Variable Rates: Interest rates are not fixed. If demand for USDC increases, your borrowing costs may go up.
- Volatility Risk: If DOGE drops 30% in a day, you must be ready to add more collateral or pay down part of the loan to avoid liquidation.
- Jurisdiction: Currently, New York residents cannot use this service because of local regulations.
Conclusion: A New Era in Finance
Coinbase’s integration with Morpho is the largest DeFi partnership so far. By removing the complexity of gas fees, wrapping, and smart contracts, they have made decentralized lending as simple as using a credit card.
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