Coinbase’s New Crypto Loans: A Tale of Financial Folly and Digital Gold

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In the ceaseless dance of human folly and the alchemy of modern finance, Coinbase has added yet another twist to the eternal question: “What if I could borrow against my Dogecoin without selling it?” Thus, the company, with the solemnity of a man announcing a new religion, now permits eligible users to pledge XRP, DOGE, ADA, and LTC as collateral for loans in USDC. One might wonder: What next? Loans against your cat’s Instagram followers?

  • Coinbase, in its infinite wisdom, has expanded its crypto-backed lending service to include XRP, DOGE, ADA, and LTC-tokens that, like a Russian peasant at a royal ball, now find themselves in positions of unexpected influence.
  • The new loans, powered by Morpho (a name that evokes both mystery and mild regret), operate on Base, offering variable rates and on-chain settlement. One suspects the word “regulated” is used here in the same spirit as “surprise” in a war novel.
  • Lower loan-to-value limits, like a stern father at a wedding, balance the exuberance of liquidity with the cold hand of risk control. After all, nothing says “trust” like borrowing against a coin that fluctuates more than a moth in a hurricane.

The company, with the timing of a man who has just remembered to take out the trash, announced this update on Feb. 18. U.S. customers (New York excluded, presumably due to the state’s suspicion of anything that sounds like a Ponzi scheme) may now borrow up to $100,000 in USDC by pledging these tokens. The service is available via Coinbase’s website and mobile app, where users can now feel the thrill of financial responsibility and the existential dread of liquidation all at once.

This move builds on Coinbase’s existing lending program, which already supports Bitcoin and Ethereum as collateral. One wonders if the company will soon offer loans against NFTs of self-portraits drawn in MS Paint. The future is bright, if slightly absurd.

How the Expanded Lending Feature Works

Under this noble experiment, users may lock up their crypto and receive USDC “instantly.” The loans, lacking fixed repayment schedules, allow borrowers to pay back at their leisure-provided their position remains “healthy,” a term that seems to imply the user has not recently cried into their keyboard over a bad trade.

The new assets, with the enthusiasm of a man who has just discovered he can buy groceries with Monero, come with lower borrowing limits than Bitcoin and Ethereum. XRP, DOGE, ADA, and LTC loans are capped at $100,000, while Bitcoin-backed loans can reach $5 million. One might infer that Bitcoin, in this tale, plays the role of the wise old king, while DOGE is the jester who occasionally forgets the script.

Holding XRP, DOGE, ADA, or LTC?

Now you can unlock the value of your portfolio without giving up your position.

Borrow up to $100k in USDC against your tokens, instantly, without selling.

Available now in the U.S. (ex. NY).

– Coinbase 🛡️ (@coinbase) February 18, 2026

Coinbase, ever the cautious host at a party where everyone is high on gas fees, applies stricter risk controls to these tokens. Their maximum loan-to-value ratio of 49% and liquidation at 62.5% reflect the volatile nature of these assets, which seem to oscillate between being “the next Bitcoin” and “the next banana.”

Interest rates, like the weather in Siberia, fluctuate based on market conditions. A one-time borrowing fee is added to the loan balance, and funds cannot be used for trading on Coinbase. One suspects the company is subtly encouraging users to reinvest in the stock market, where losses are tax-deductible.

Coinbase claims Morpho powers the service, running on Base, its layer-2 blockchain network. Collateral is moved on-chain and managed through decentralized lending pools, while users interact through Coinbase’s interface. It is a ballet of complexity, where every step is choreographed by risk models and the faint hope of profitability.

Demand for Crypto-Backed Borrowing Grows

Crypto-backed loans, like a Russian nesting doll of financial innovation, have become popular among investors seeking liquidity without the burden of selling assets. With ADA, LTC, DOGE, and XRP’s combined market values of around $120 billion, Coinbase now has access to a pool of potential borrowers large enough to fund a small war.

Before this expansion, the company had reported $1.9 billion in loans originated through the platform. One imagines this number will grow as more users discover the joy of borrowing against their crypto while wondering why their portfolio looks like a graph of a dying star.

Supporters, with the fervor of true believers, argue the service offers flexibility for expenses, cash flow, or investing elsewhere. Critics, with the wisdom of those who have seen it all, caution that price fluctuations can lead to liquidations faster than a man in a tuxedo at a black-tie event.

Coinbase, ever the pragmatist, notes that borrowers risk losing collateral if values drop significantly. Loan terms vary by location and market state, and the company wisely disclaims any responsibility for tax or investment advice. It is a world where the only constant is uncertainty, and the only certainty is the fee.

With the addition of these four altcoins, Coinbase positions its lending service as an alternative to both traditional credit products and decentralized platforms. One wonders if the next step is a loan against your soul, interest-free but with a 100% liquidation risk. The future is not just digital-it’s a comedy of errors written in hexadecimal.

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2026-02-19 08:23