Coinbase expands crypto-backed lending to include altcoins such as XRP and Dogecoin
Summary
- Coinbase said it has expanded the collateral scope of its crypto-backed lending product to major altcoins, including XRP (XRP), Dogecoin (DOGE), Cardano (ADA) and Litecoin (LTC).
- Users can borrow the stablecoin USDC against their crypto holdings, and the loans are executed on-chain via the DeFi protocol Morpho (Morpho), it said.
- U.S. users outside New York State can borrow USDC against altcoins up to $100,000, with a maximum loan-to-value (LTV) ratio of 49% and automatic liquidation if the LTV exceeds 62.5%, it said.
Coinbase, a global digital-asset (cryptocurrency) exchange, has expanded the range of collateral eligible for its crypto-backed lending product from Bitcoin (BTC) and Ethereum (ETH) to major altcoins.
According to industry sources on the 23rd, Coinbase recently added XRP (XRP), Dogecoin (DOGE), Cardano (ADA) and Litecoin (LTC) as eligible collateral assets. Users can borrow the U.S. dollar-pegged stablecoin USDC against their crypto holdings.
The service is structured to run on-chain via the decentralized finance (DeFi) protocol Morpho, without using Coinbase’s own balance sheet. When a user applies for a loan, the pledged collateral is automatically managed through smart contracts.
Meanwhile, U.S. users outside New York State can borrow USDC against their altcoins up to a limit of $100,000. The maximum loan-to-value (LTV) ratio is set at 49%, and automatic liquidation occurs if the LTV exceeds 62.5% due to a decline in collateral value.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
