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Coinbase has launched a crypto-backed lending product in the UK. The service lets British users borrow USDC against Bitcoin, Ethereum, and cbETH, with funds arriving in under a minute. The rollout gives UK holders a way to unlock liquidity without selling crypto and without creating a capital gains tax event under current HMRC rules.
For users with large unrealized gains, that structure changes the decision around access to cash. Selling crypto can trigger tax. Borrowing against it does not, because the collateral remains locked rather than disposed of.
The product gives British customers access to stablecoin liquidity while they keep their crypto positions intact. Users can pledge Bitcoin, Ethereum, or cbETH and draw USDC almost immediately.
That matters for holders who bought crypto years ago and now want capital for other uses. The text points to renovations, deposits, or fresh positions as examples of why a holder may seek cash.
The loan itself uses USDC, a stablecoin pegged to the dollar. As a result, the borrowed amount does not carry the same price swings as the collateral behind it.
Under HMRC rules, selling, swapping, or gifting crypto counts as a disposal. That can trigger Capital Gains Tax on profits above the annual exempt amount.
By contrast, a crypto loan does not create that disposal event. The collateral stays in the user’s name and remains locked in a smart contract instead of being sold.
Coinbase built the UK product on Morpho’s open-source lending protocol. The company connects customers directly to liquidity pools on Base rather than using its own balance sheet.
The company said users can receive loans in less than one minute. After they pledge collateral, they can draw USDC through smart contracts running on Base.
This UK rollout extends a product that already operates in the United States. Coinbase launched the US version in January 2025 and, by April 14, 2026, total loan originations had passed $2.17 billion USDC.
The UK move marks the first expansion of the Morpho-powered borrowing service outside the US. Coinbase has also signaled that more countries will follow.
Circle, the issuer of USDC, forms part of the infrastructure behind products like this. The post places that role within the wider buildout of on-chain financial markets.
The lending launch follows several other Coinbase moves in the UK. Since gaining FCA registration in February 2025, the company has widened its product lineup for British customers. It rolled out savings accounts in November 2025. Then, in April 2026, it expanded decentralized exchange trading access in the UK before adding crypto-backed borrowing in the same month.
That expansion comes after major failures in crypto lending. The post compares the use case with what Celsius once promised but later failed to deliver.
Read More: Coinbase Secures OCC Trust Charter for US Crypto Market
The competitive field in the UK has also stayed thin since Celsius collapsed and Nexo withdrew. Against that backdrop, Coinbase now offers a regulated, exchange-native borrowing option.
Even so, the product still carries terms that users must weigh carefully. Variable rates, liquidation risk, and collateral lock-up remain part of the borrowing equation.
For UK crypto holders, the service changes the immediate question. The issue now is not whether a compliant borrowing option exists, but whether the structure fits a user’s risk profile.
Coinbase UK has introduced crypto-backed USDC loans that let users borrow against Bitcoin, Ethereum, and cbETH without selling their assets. The product offers fast access to liquidity, avoids a Capital Gains Tax event under HMRC rules, and expands regulated borrowing options for British crypto holders.
