Coinbase has broadened its on-chain lending program to allow U.S. users, excluding those in New York, to borrow up to $100,000 in USDC against XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC). This expansion taps into a $117 billion pool of previously idle assets, leveraging the Base Layer-2 network for efficient, low-cost transactions. The program, which has already surpassed $1.9 billion in total volume, enables users to access fiat-equivalent funds without selling their crypto holdings, thus avoiding capital gains taxes.
The lending service operates through Morpho vaults on Coinbase's Base network, an Ethereum Layer 2 solution, ensuring secure and rapid borrowing. Previously limited to Bitcoin and Ethereum, the inclusion of these altcoins unlocks significant liquidity for holders. The loan-to-value ratio is capped at 49%, with liquidation at 62.5%, providing a buffer against market volatility. This move aligns with Coinbase's vision of creating an "everything app" for crypto, enhancing user engagement and confidence in these assets' long-term potential.
Coinbase Expands Crypto Lending to Include XRP, DOGE, ADA, and LTC
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