News: Coinbase UK has launched a crypto-backed lending product enabling British users to borrow USDC against Bitcoin, Ethereum, and cbETH. This allows access to liquidity without selling crypto, avoiding potential Capital Gains Tax under HMRC rules. Loans are processed quickly, often within a minute, and are built on Morpho’s open-source lending protocol, connecting users to liquidity pools on Base. The US version of the product has already seen $2.17 billion USDC in loan originations. Coinbase has expanded its UK offerings since gaining FCA registration, including savings accounts and decentralized exchange trading.
AI Analysis: This launch provides a regulated borrowing option in the UK crypto market, filling a gap left by the failures of Celsius and Nexo. It offers a tax-efficient way for holders to access capital without liquidating their positions, potentially driving further adoption of crypto lending.
