KEY INSIGHT
- Coinbase added XRP, DOGE, ADA, and LTC as eligible collateral, allowing U.S. users (excluding New York) to borrow up to $100,000 in USDC without selling their crypto.
- The lending product runs on Morpho via Coinbase’s Base network, combining centralized access with decentralized onchain liquidity.
Coinbase Expands Onchain Lending to XRP, DOGE, ADA, and LTC
Coinbase has expanded its onchain lending program to include XRP, Dogecoin, Cardano, and Litecoin as eligible collateral. The update allows verified U.S. customers — excluding New York residents — to borrow against these assets without selling them.
Users can access up to $100,000 in USDC while keeping long-term exposure to their crypto holdings. The move highlights Coinbase’s continued push into decentralized finance and growing demand for crypto-backed credit products.
Powered by Morpho on Base
The lending service runs through the Morpho protocol on Coinbase’s Base network. Coinbase handles the front-end experience, while Morpho manages onchain liquidity markets.
This hybrid structure combines centralized user access with decentralized liquidity pools, positioning Coinbase as a bridge between traditional finance users and DeFi infrastructure.
Jacob Frantz, Coinbase’s product lead, said the expansion allows more users to “leverage your crypto without having to sell,” adding that broader collateral options move the industry closer to a future where tokenized assets power more flexible financial services.
In addition to the new altcoins, Bitcoin-backed loans can reach up to $5 million, while Ether loans allow up to $1 million. Coinbase reports over $1.9 billion in total loan originations to date.
Loan Terms and Risk Controls
Altcoin-backed loans — XRP, DOGE, ADA, and LTC — allow up to 49% loan-to-value (LTV), with liquidation triggered at 62.5%. By contrast, Bitcoin and Ether loans permit up to 75% LTV, with liquidation at 86%, reflecting their relatively lower volatility.
Interest rates fluctuate based on supply and demand within Morpho markets, and Coinbase charges a one-time fee when loans are initiated or expanded. There are no fixed repayment schedules, but borrowers must monitor collateral value closely to avoid liquidation during market downturns.
Importantly, Coinbase does not allow borrowed funds to be used for trading on its exchange, limiting speculative activity. The company also indicated plans to expand the product beyond the United States in the future.
