Coinbase Expands Crypto-Backed USDC Loans to These Alts

Coinbase has officially expanded its crypto-backed lending product to allow users in the United States (excluding New York) to borrow USD Coin (USDC) against additional collateral types. Including XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC). Customers can unlock liquidity up to $100,000 in USDC without selling their tokens.

Furthermore, the service is powered by the Morpho on-chain lending protocol on Base, and integrates seamlessly into Coinbase’s lending interface.

Borrowing against crypto rather than selling can help users bridge short-term financial needs without triggering taxable events that come with realised gains.

Coinbase’s Crypto-Backed Loan Explained

The platform enables finance access by allowing verified U.S. customers to pledge eligible crypto as collateral and instantly borrow USDC based on its value.

Additionally, the expansion adds XRP, DOGE, ADA and LTC to the list of supported assets alongside existing collateral options like BTC and ETH.

Importantly, borrow limits vary based on collateral value and risk profiles. Loans remain over-collateralised to protect lenders and maintain system stability.

The process occurs on-chain via the Morpho protocol on Base. Therefore, the collateral is managed programmatically with auto-conversion logic.

Users can repay loans partially or fully at any time, and there are no fixed repayment deadlines. This gives flexibility to manage positions based on individual financial strategies.

However, collateral must remain above certain loan-to-value thresholds to avoid automatic liquidation if market prices fall sharply.

Impact for Users and Crypto Utility

The expanded lending product allows holders of XRP, DOGE, ADA, and LTC to tap liquidity without selling. Keeping long-term positions intact.

This means investors who believe in the future price upside of their crypto assets can unlock cash flows without triggering capital gains events.

Also, stablecoin borrowing becomes especially relevant during periods of heightened market volatility, where selling at sub-optimal prices could crystallise losses.

USDC, a regulated stablecoin, offers users a trusted cash-equivalent instrument to cover expenses, rebalance portfolios, or fund new opportunities.

Indeed, Coinbase’s integration of Morpho’s on-chain lending mechanics illustrates how decentralized infrastructure can power traditional financial services.

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