Coinbase has launched a crypto lending service for its UK customers, where users can take loans in the form of the USDC stablecoin based on their crypto assets. The announcement was made by the company on April 20, 2026, which aims to give British investors more flexibility and liquidity without having to liquidate their assets.
The service specifically enables eligible UK residents to use Bitcoin and Ethereum as collateral to secure loans in USDC. By providing this feature, Coinbase addresses a growing demand for regulated credit facilities within the British Web3 ecosystem, mirroring similar products previously available in the United States market.
Crypto-backed loans are now live in the UK.
Start borrowing USDC against BTC, ETH and cbETH.
Unlocking liquidity without having to sell your crypto. pic.twitter.com/rDeGaAUYhl
— Coinbase UK 🛡️ (@coinbaseuk) April 20, 2026
Enhancing liquidity through collateralised borrowing
Under the new framework, users can access up to a specific percentage of their collateral’s value, known as the loan-to-value (LTV) ratio. This mechanism ensures that the platform remains over-collateralised, protecting the service against the inherent volatility of the crypto market.
Borrowed USDC funds can be either transferred out of the platform and into other wallets or used for further investing purposes through the Coinbase network, including spending the funds using the Coinbase card. The introduction of the feature took place after a long time, when the UK regulatory authorities were putting a lot of pressure on digital asset businesses.
The decision by Coinbase to extend its credit products in the United Kingdom is a reflection of a company-wide strategy to secure a strong foothold in global centres with a roadmap for regulation.
Crypto Lending Momentum Builds
Nexo hit $30 billion in cumulative stablecoin inflows by early 2026, fueled by users chasing yields amid volatility, while CoinRabbit slashed rates on XRP loans across 300 assets to lure more borrowers. These moves signal robust demand for crypto credit, as platforms blend CeFi scale with DeFi speed. Yet, total outstanding loans could top $90 billion this year as stablecoins anchor liquidity, but borrowers must watch collateral ratios closely.
Ultimately, Coinbase continues to position itself as a regulated bridge for users looking to leverage their portfolios for real-world utility.
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