Coinbase has expanded its crypto-backed lending service to include XRP, Dogecoin, Cardano, and Litecoin, allowing eligible users to borrow against more assets without selling their holdings.
Summary
- Coinbase has expanded its crypto-backed lending service to include XRP, DOGE, ADA, and LTC.
- The new loans are powered by Morpho and run on Base, offering variable rates and on-chain settlement through a regulated structure.
- Lower loan-to-value limits reflect the higher volatility of these assets, balancing access to liquidity with tighter risk controls.
The company announced the update on Feb. 18, saying U.S. customers, excluding those in New York, can now borrow up to $100,000 in USDC by pledging the four tokens as collateral. The service is available through Coinbase’s website and mobile app.
The move builds on Coinbase’s existing lending program, which already supports Bitcoin and Ethereum as collateral.
How the expanded lending feature works
Under the program, users can lock up their crypto and receive USDC almost instantly. The loans do not have fixed repayment schedules and can be paid back at any time, as long as the position remains healthy.
The new assets come with lower borrowing limits than Bitcoin and Ethereum. XRP, DOGE, ADA, and LTC loans are capped at $100,000, while Bitcoin-backed loans can reach $5 million and Ethereum-backed loans can reach $1 million.
Stricter risk controls are applied by the platform to the recently added tokens. These assets have a maximum loan-to-value ratio of 49%, and at 62.5%, liquidation is initiated. This reflects how volatile their prices are in comparison to those of Bitcoin and Ethereum.
Interest rates fluctuate based on the state of the market. A one-time borrowing fee is added to the loan balance, and funds cannot be used for trading on Coinbase.
Coinbase said Morpho powers the service and runs on Base, its layer-2 blockchain network. Collateral is moved on-chain and managed through decentralized lending pools, while users interact through Coinbase’s interface.
Demand for crypto-backed borrowing grows
Crypto-backed loans have become popular among investors who want to access funds without having to sell assets and incur taxable events. With ADA, LTC, DOGE, and XRP’s combined market values of around $120 billion at the time of the announcement, Coinbase has access to a substantial pool of potential borrowers.
Before this expansion, the company had reported that over $1.9 billion in loans had been originated through the platform, indicating consistent demand for the product.
Supporters say the service gives users flexibility to cover expenses, manage cash flow, or invest elsewhere while keeping long-term positions intact. Critics, on the other hand, caution that price fluctuations, particularly in volatile markets, can swiftly result in liquidations.
According to Coinbase, borrowers run the risk of losing collateral if values drop significantly, and loan terms differ depending on the location and state of the market. The company also said it does not provide tax or investment advice.
With the addition of four major altcoins, Coinbase is positioning its lending service as an alternative to both traditional credit products and decentralized lending platforms.