- Coinbase now allows XRP, ADA, DOGE, and LTC holders to borrow USDC without selling.
- If prices fall too much, the crypto used as collateral can be liquidated.
Coinbase has expanded its crypto lending service in the United States except in New York, which allows the holder of XRP, DOGE, ADA, and LTC to borrow money without selling their crypto. Coinbase now lets the eligible users borrow up to $100,000 USDC by using their crypto as collateral.
How It Works
The users can lock their tokens as collateral and receive USDC in return instead of selling crypto. The loans are processed on-chain on Morpho, which is a decentralized lending protocol. The loans operate using blockchain smart contracts instead of Coinbase’s internal balance sheet.
Previously Coinbase lending service supported Bitcoin and Ethereum. Right now, XRP, Doge, and ADA inclusion make the open service a more retail-focused token. Some assets, like Ethereum and Cardano, already allow users to earn staking rewards. But holders of other tokens can now borrow against their assets, which is one of the few ways to generate liquidity without selling. As per the report, Coinbase is holding $17.2 billion worth of XRP in customer accounts as of December 31.
Holding XRP, DOGE, ADA, or LTC?
— Coinbase 🛡️ (@coinbase) February 18, 2026
Now you can unlock the value of your portfolio without giving up your position.
Borrow up to $100k in USDC against your tokens, instantly, without selling.
Available now in the U.S. (ex. NY). pic.twitter.com/Uozxim3t7C
Coinbase warns about risks
Although borrowing against the crypto could be tax-efficient, selling assets may trigger capital gains taxes and carry risk. If the value of the crypto drops, then the loan can be liquidated, and the third party may repay the loan and take the borrower’s crypto at a discount. So, Coinbase says that it adds a safety buffer to reduce the liquidation and sends warnings if the position approaches danger levels.
Coinbase also warns that some assets can be converted into the wrapped tokens to make the lending system work in the Ethereum-compatible network, which could have tax implications depending on the local regulations. However, by providing more borrowing options to the users, Coinbase is positioning itself as a broader crypto financial services platform.
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