Coinbase Drops $5M Crypto Loans in UK as DeFi Goes Mainstream

Quick overview

Coinbase has now rolled out crypto-backed lending in the United Kingdom, letting eligible users get their hands on upto $5 million in USDC by putting their digital assets on the line as collateral. Powered by the morph protocol on Base, this expansion is making it possible to get quick cash without having to sell any of your assets.

How it Works: Getting Liquidity via Base

The service is set up so users can put BTC, ETH, or cbETH up as collateral. These assets get locked into smart contracts making sure loans are way over collateralised.

• Get Instant Access: USDC is issued in a matter of seconds, and you can access it right in the Coinbase app.
• Interest Rates adjust on the fly: How much interest you pay will change in real-time depending on what’s happening on the blockchain with supply and demand.
• Repay at Your Leasure: You can pay back your loan whenever you want with no set schedule.
• Stay Alert: If your collateral is about to get wiped out – you’ll get a warning.

YOU CAN NOW USE YOUR BITCOIN AS A BANK. 🏦

Coinbase just launched crypto-backed loans in the UK.

Hold Bitcoin. Borrow USDC against it. Never sell.

No credit check. No bank approval.
No selling your most valuable asset.

Europe just got access to the financial system Bitcoin… pic.twitter.com/d6HVMTSjGC

— The Crypto Johannes (@TheCryptoJonny) April 21, 2026

Global Expansion Moves Ahead

The launch in the UK shows just how far Coinbase is willing to push DeFi into regulated markets. By using Base, its Layer-2 blockchain, Coinbase is reaping the benefits of much lower fees & faster transaction times compared to working with a Layer-1 solution. This mirrors the way traditional “lombard loans” work – where people can get money without ever having to sell out or trigger a taxable event.

Proven Demand and More Collateral Options

This comes on the back of a really successful launch in the United States back in 2025. As of April 2026, Coinbase has racked up over $2.17 billion in USDC loan originations in that market. They’ve also added XRP, DOGE, ADA & LTC to the list of eligible collateral in the US, showing a trend toward offering more & more assets in the lending ecosystem.

When DeFi Meets AI

Its not just lending for Coinbase, theyre also looking at integrating AI into all of their core infrastructure. CEO Brian Armstrong says he thinks a future where AI Agents control the flow of money is the way to go for DeFi. To make this a reality, the x402 protocol lets AI agents make payments to each other using both crypto & traditional methods. This is all hinting at a future where AI is both managing & executing the flow of cash & making the all important liquidity decisions completely on its own.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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