Coinbase Adds XRP, Dogecoin, Cardano and Litecoin to Crypto-Backed Loan Service

Coinbase has expanded its crypto-backed lending service to include four additional tokens, XRP, Dogecoin, Cardano and Litecoin, allowing eligible US users to borrow against a broader range of digital assets without selling their holdings.

The company said on February 18 that customers in the United States, except those in New York, can now access loans of up to $100,000 in USD Coin by pledging the newly added tokens as collateral. The feature is accessible through Coinbase’s website and mobile application.

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). pic.twitter.com/Uozxim3t7C
— Coinbase 🛡️ (@coinbase) February 18, 2026

The update builds on the exchange’s existing lending program, which already supports borrowing against Bitcoin and Ethereum.

How the lending program operates

Under the service, users lock up crypto assets and receive USDC almost instantly. Loans come without fixed repayment deadlines and can be repaid at any time, provided the collateral ratio remains within platform requirements.

Borrowing limits vary by asset. While Bitcoin-backed loans can reach up to $5 million and Ethereum-backed loans up to $1 million, loans secured by XRP, DOGE, ADA and LTC are capped at $100,000.

The newly added tokens are subject to tighter risk controls due to their higher price volatility. They carry a maximum loan-to-value (LTV) ratio of 49%, with liquidation triggered at 62.5%. Interest rates fluctuate based on market conditions, and a one-time borrowing fee is added to the loan balance. Coinbase also restricts the use of borrowed funds for trading on its platform.

The lending infrastructure is powered by Morpho and operates on Base, Coinbase’s layer-2 blockchain network. Collateral is managed on-chain through decentralized lending pools, while users interact through Coinbase’s centralized interface.

Rising demand for crypto-backed borrowing

Crypto-backed loans have gained traction among investors seeking liquidity without triggering taxable sales. With the combined market capitalization of ADA, LTC, DOGE and XRP estimated at around $120 billion at the time of the announcement, Coinbase is tapping into a sizable borrower base.

While supporters say the product offers flexibility for managing expenses or investments, critics warn that sharp market swings can quickly lead to forced liquidations. Coinbase noted that borrowers risk losing collateral if asset prices fall significantly and emphasized that it does not provide tax or investment advice.

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