Coinbase Expands Crypto-Backed Lending to XRP, Dogecoin, ADA, and Litecoin

Coinbase has expanded its crypto-backed lending service to include XRP, Dogecoin, Cardano, and Litecoin, allowing users to borrow up to $100,000 in USDC without selling their crypto.

The lending service runs through the Morpho protocol on the Base network and includes stricter risk controls compared to Bitcoin and Ethereum-backed loans.

This expansion aims to increase borrowing capacity for investors while maintaining exposure to the price movements of these tokens.

The service is available to eligible US users and operates with a maximum loan-to-value ratio of 49% and liquidation initiated at 62.5%. The funds borrowed cannot be used for trading on Coinbase and are intended to provide liquidity without triggering taxable capital gains.

The broader crypto lending market has seen a contraction, with active loans falling to around $30 billion as of February 2026. Despite this, Coinbase's move diversifies its revenue beyond trading fees and leverages DeFi protocols to offer liquidity solutions.

Why This Matters for the Market?

This expansion highlights Coinbase's strategic shift into DeFi-based liquidity solutions amid a challenging macroeconomic climate for altcoins. The inclusion of XRP, Dogecoin, Cardano, and Litecoin in the lending service reflects a growing trend in the sector to offer more diversified collateral options.

By using Morpho on Base, Coinbase is addressing the inherent volatility of these tokens through tighter risk controls. This could potentially attract investors who wish to retain their positions while accessing liquidity.