Coinbase Expands Crypto-Backed Loans to XRP, DOGE, ADA and Litecoin Across the U.S.

Coinbase is expanding its crypto-backed lending product in the United States, adding support for XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC). The move broadens access to a service designed to help crypto investors unlock liquidity without selling their digital assets. The offering is available nationwide, except in New York.

The crypto lending product allows eligible users to borrow up to $100,000 in USDC, the stablecoin issued by Circle, by posting supported cryptocurrencies as collateral. Instead of using Coinbase’s own balance sheet, the loans are facilitated through Morpho, a decentralized lending protocol. This means the borrowing process takes place on-chain, reinforcing transparency and leveraging decentralized finance (DeFi) infrastructure.

Previously focused on Bitcoin (BTC) and Ethereum (ETH), the expansion now includes several popular retail cryptocurrencies. While Ethereum and Cardano holders can generate passive income through staking, tokens such as XRP, DOGE, and Litecoin do not offer native staking rewards. For many investors, crypto-backed loans provide one of the few ways to access cash without liquidating their holdings.

According to a recent SEC filing, Coinbase held $17.2 billion worth of XRP as of December 31, highlighting the token’s significant presence on the platform. By increasing the range of eligible collateral, Coinbase is also expanding the potential liquidity pool available to its customers.

Crypto-backed lending is often promoted as a tax-efficient strategy because borrowing against digital assets does not trigger capital gains taxes like selling would. However, the strategy carries risks. If the value of the collateral drops significantly, the loan may be liquidated. In such cases, third parties can repay the debt and claim the collateral at a discount.

To mitigate liquidation risk, Coinbase applies a buffer when loans are issued and notifies users as they approach critical thresholds. The exchange also notes that collateral assets are wrapped, enabling tokens like XRP to operate on Ethereum-compatible networks.