Coinbase, the leading U.S.-based cryptocurrency exchange, has officially expanded its innovative onchain lending product by integrating several major digital assets as eligible collateral. In a strategic move to enhance utility for long-term holders, the exchange now allows users to leverage XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC) to secure loans in USD Coin (USDC). This expansion is powered by the Morpho DeFi protocol and operates on Base, Coinbase’s proprietary Ethereum Layer-2 network.
This development marks a significant milestone for the "crypto-native" financial ecosystem. Previously, Coinbase’s lending services were primarily focused on market leaders like Bitcoin (BTC) and Ethereum (ETH). By adding high-liquidity assets like XRP and DOGE, Coinbase is catering to a broader demographic of retail and institutional investors who wish to access liquidity without triggering a taxable event or losing their market position. Eligible U.S. customers (excluding residents of New York) can now borrow up to $100,000 in USDC by pledging these newly supported assets. For BTC and ETH, the borrowing limits remain significantly higher, at $5 million and $1 million respectively.
The mechanism behind these loans utilizes "wrapped" versions of the tokens—such as cbXRP and cbDOGE—which are backed 1:1 by the underlying assets held in Coinbase’s secure custody. This ensures that the assets remain productive within the decentralized finance (DeFi) space. According to Coinbase, the onchain loan product has already facilitated over $1.9 billion in total loan originations since its inception. The platform charges a one-time processing fee for each borrowing transaction, and interest rates are variable, determined by the supply and demand dynamics within the Morpho protocol.
One of the most attractive features for borrowers is the flexibility of repayment. There is no fixed monthly schedule; instead, users must maintain a healthy loan-to-value (LTV) ratio. Liquidation is typically triggered if the loan value reaches 86% of the collateral’s market value, providing a clear risk management framework for participants. This move by Coinbase not only strengthens the utility of XRP and Dogecoin but also demonstrates the increasing maturity of onchain credit markets, where traditional financial services are being reimagined through automated smart contracts and borderless capital flows.