Market News

UK Crypto Market Welcomes Coinbase's New USDC Loan Feature

Coinbase has officially expanded its financial services to the UK by offering crypto-backed USDC loans.

UK residents can now use their Bitcoin (BTC) and Ethereum (ETH) holdings as collateral to borrow USDC.

This move mirrors Coinbase's successful loan offerings in the United States, where demand reached over $2.17 billion USDC since its launch.

Users can borrow up to $5 million in USDC based on the amount of BTC pledged, with all collateral managed through Morpho's on-chain protocol.

Importantly, loans will be secured with collateral locked in a smart contract, although there is no fixed repayment schedule.

If collateral value drops too low, it may be liquidated to cover the loan, incurring a penalty fee.

This introduction marks a significant step in Coinbase’s strategy to develop a comprehensive suite of financial products in the UK, following its registration with the Financial Conduct Authority.

Additionally, Coinbase is innovating in traditional finance, recently partnering with Better Home & Finance to allow users to leverage their cryptocurrency for mortgage down payments.

The latest development aligns with Coinbase's broader goal of becoming a federally regulated crypto custodian in the U.S.

Overall, Coinbase's efforts reflect a strong commitment to bridging digital and traditional finance within the evolving crypto landscape.