Coinbase Expands U.S. Crypto-Backed USDC Lending to XRP, ADA, DOGE and Litecoin Collateral

Coinbase has expanded its U.S. crypto-backed lending to accept XRP, Cardano's ADA, DOGE at $0.1017 and Litecoin at $53.44 as collateral, enabling customers to borrow up to $100,000 in Circle's USDC without selling their holdings, an SEC filing shows. The loans are processed onchain through decentralized protocol Morpho rather than Coinbase's balance sheet, and the service is available in all U.S. states except New York. Coinbase held $17.2 billion worth of XRP in customer accounts as of Dec. 31 and noted that while assets like Ethereum and Cardano offer staking rewards, tokens such as XRP, DOGE and Litecoin rely on borrowing for liquidity access. The exchange said these loans, often seen as a tax-efficient alternative to selling, carry liquidation risk if collateral values drop, prompting Coinbase to add buffers, issue threshold alerts and wrap tokens like XRP for use on Ethereum-compatible networks.