TL;DR:
- Coinbase launched USDC loans backed by cryptocurrencies for UK users, with BTC, ETH and cbETH as collateral.
- The loans operate on Morpho, an onchain protocol built on Base. Total originated in the U.S. exceeds $2.17 billion in USDC.
- Spot Bitcoin ETFs in the U.S. recorded net inflows of $996.4 million last week, their largest weekly figure since mid-January.
Coinbase extended its crypto-backed lending product to the United Kingdom, allowing its users to obtain USDC using Bitcoin, Ethereum or cbETH as collateral in a process that takes less than a minute. This is made possible by Morpho, an open-source protocol deployed on Base, the company’s own layer-2 network. Maximum amounts can reach five million dollars in BTC-backed loans, depending on the value of the committed assets.
The exchange seeks to consolidate itself as the leading financial application in the country. Keith Grose, Coinbase’s head for the United Kingdom, noted that this product follows the debut of decentralized trading in April 2026, the savings accounts launched in November 2025, and the successful registration with the Financial Conduct Authority (FCA) obtained in February 2025. The loans have no fixed repayment schedule and interest rates are variable, automatically calculated by Morpho based on market conditions at each block generated on Base.
Coinbase Will Offer Loans in New Countries
The interest from institutional profiles in the product in the United States, where it launched in January 2025, proved highly compelling and sent a clear signal to the company: total loans originated through Coinbase on Morpho exceeded $2.17 billion in USDC. The exchange anticipated that it will continue expanding the service to other countries in the coming months.
Institutions Push to Enter the Market
Coinbase continues to penetrate the British market, coinciding with a week of strong appetite for exposure to crypto assets globally. According to data from SoSoValue, spot BTC ETFs in the United States recorded net inflows of $996.4 million during the past week, the largest weekly volume since mid-January. BlackRock‘s IBIT fund received around $906 million, while the recently launched MSBT from Morgan Stanley recorded $71 million in its first full week of operations.
Jeff Mei, chief operating officer of BTSE, attributed institutional interest to expectations of a de-escalation in the conflict between the United States and Iran. However, he also warned that sustained demand will depend largely on new rate cuts by the Federal Reserve.
