TLDR
- Coinbase has added XRP, Dogecoin, Cardano, and Litecoin as collateral for crypto-backed loans
- Users can borrow up to $100,000 in USDC without selling their crypto
- Loans run through DeFi protocol Morpho on the Base network
- Available to U.S. users except New York; XRP/DOGE/ADA/LTC loans capped at 49% LTV
- The product has already processed over $1.9 billion in loan originations
Coinbase has expanded its crypto-backed lending product to include four more tokens: XRP, Dogecoin, Cardano’s ADA, and Litecoin.
Coinbase adds XRP, Dogecoin, Cardano and Litecoin as collateral for onchain loans via Morpho
holders can now borrow USDC against these assets without selling. The bridge between CeFi and DeFi continues to strengthen. https://t.co/BzWRwRtaJn pic.twitter.com/dSkdzhhoZR— 𝗕𝗮𝗻𝗸XRP (@BankXRP) February 18, 2026
Eligible U.S. customers, excluding those in New York, can now borrow up to $100,000 in USDC by using these assets as collateral.
The loans run through Morpho, a decentralized lending protocol operating on Base, Coinbase’s own Ethereum layer-2 network. Coinbase provides the user interface but the borrowing mechanics are handled on-chain.
Coinbase first launched the product with Bitcoin support, then added Ether. Bitcoin holders can borrow up to $5 million in USDC, and Ether holders up to $1 million.
The service has already seen more than $1.9 billion in total loan originations since launch, according to Coinbase.
The new tokens come with tighter lending limits. XRP, Dogecoin, ADA, and Litecoin loans allow a maximum loan-to-value ratio of 49%, compared to 75% for Bitcoin and Ether.
Liquidation for the new tokens is triggered at 62.5% LTV, while Bitcoin and Ethereum loans face liquidation at 86%.
LTV measures the loan size relative to the value of posted collateral. It rises when collateral drops in price or interest accrues, and falls when collateral goes up or the loan is repaid.
How the Loans Work
There is no fixed repayment schedule, but borrowers must keep their LTV ratio within the allowed range to avoid liquidation.
Interest rates are variable, set by supply and demand on the Morpho protocol. Coinbase charges a one-time fee each time a customer borrows, even when adding to an existing loan.
Borrowers cannot use loan proceeds to trade on Coinbase under its terms of service.
Coinbase held $17.2 billion in XRP in customer accounts as of December 31, according to an SEC filing, making it one of the largest assets on the platform.
Risks to Know
The product is often described as tax-efficient because borrowing against crypto does not trigger capital gains the way selling does. However, this depends on individual tax circumstances.
If collateral values fall too far, a liquidation can occur. A third party repays the debt and seizes the collateral at a discount.
Some tokens must be wrapped to work as collateral on Ethereum-compatible networks. Coinbase has warned this conversion process may itself be a taxable event.
Coinbase says it applies a buffer when loans are issued and sends alerts as borrowers approach the liquidation threshold.
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.”
Broader international access to the product is planned, though no specific timeline has been given.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
