Coinbase has broadened its onchain lending program by adding XRP, Dogecoin, Cardano, and Litecoin as eligible collateral. The move allows verified U.S. customers, except those in New York, to unlock liquidity without selling their digital assets. Consequently, users can borrow up to $100,000 in USDC while maintaining long-term exposure to their holdings. The expansion signals Coinbase’s deeper push into decentralized finance infrastructure. Moreover, it reflects rising demand for flexible credit products backed by crypto assets. Powered by Morpho on Base The lending product operates through the Morpho protocol on Coinbase’s Base network. Additionally, Coinbase manages the user interface while Morpho facilitates lending markets onchain. This structure blends centralized access with decentralized liquidity pools. Hence, Coinbase strengthens its position as a gateway between traditional users and DeFi systems. Jacob Frantz, product lead at Coinbase, said, “No matter what you're holding, you should be able to leverage your crypto without having to sell.” He added, “Being able to borrow against more tokens means more opportunity to make your crypto work for you, and it's an exciting preview to a future where all kinds of tokenized assets can be used to build better financial services.” Besides the new altcoins, Coinbase already supports Bitcoin and Ether as collateral. Bitcoin-backed loans reach up to $5 million, while ether loans allow up to $1 million. The company reports more than $1.9 billion in total loan originations so far. Loan Structure and Risk Controls Borrowers must maintain specific loan-to-value ratios to avoid liquidation. XRP, DOGE, ADA, and LTC loans allow up to 49% LTV, with liquidation at 62.5%. Meanwhile, Bitcoin and Ether loans permit up to 75% LTV, with liquidation triggered at 86%. Consequently, borrowers face tighter limits on altcoin-backed loans due to volatility. Interest rates fluctuate based on supply and demand within Morpho markets. Additionally, Coinbase charges a one-time fee whenever users initiate or expand a loan. The platform does not impose fixed repayment schedules. However, users must monitor collateral value closely as falling prices increase liquidation risk. Significantly, Coinbase prohibits borrowers from using loan proceeds for trading on its exchange. This restriction limits speculation while encouraging broader financial use cases. Moreover, the company plans to extend access beyond the United States in the future.
