Coinbase has expanded its digital asset collateral for its coin-backed loan product to include XRP, DOGE, ADA, and LTC. Eligible users can borrow up to $100,000 in USDC by depositing these assets, with service coverage across the United States except New York. The loan operates on-chain via the Morpho DeFi protocol, with collateral management and liquidations executed by Morpho’s smart contracts.
As of the 21st, Coinbase’s coin-backed loan program reports 18,608 wallets in use and cumulative lending approaching $1.872 billion. This expansion broadens the collateral pool from Bitcoin and Ethereum to altcoins, potentially drawing more retail capital into the DeFi lending market. However, increased price volatility in the newly added assets heightens the risk of auto-liquidation during downturns, underscoring investor caution in volatile markets.
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