Overview
- Coinbase, which announced the feature Monday, now lets eligible UK customers borrow USDC against bitcoin, ether and cbETH without selling their holdings.
- Loan limits start at up to $5 million for bitcoin collateral and up to $1 million for ether, with caps tied to collateral value and loan‑to‑value rules.
- When a user opens a position, the collateral moves into a Morpho smart contract on the Base network and USDC is sent to the user’s Coinbase account within minutes.
- Interest rates change in real time based on on‑chain supply and demand, there is no fixed repayment schedule, and loans can be liquidated if loan‑to‑value thresholds are breached.
- Coinbase reports $2.17 billion in U.S. originations through Morpho as of April 14, and the UK debut follows FCA registration and recent local launches such as GBP savings and DEX access with more countries planned.