Coinbase adds support for XRP, DOGE, ADA, LTC as loan collateral via Morpho
#TradeCryptosOnX Coinbase has expanded its crypto-backed lending service to include XRP, Dogecoin, Cardano, and Litecoin, allowing eligible users to borrow against more assets without selling their holdings.
The company announced the update on Feb. 18, saying U.S. customers, excluding those in New York, can now borrow up to $100,000 in USDC by pledging the four tokens as collateral. The service is available through Coinbase’s website and mobile app.
The move builds on Coinbase’s existing lending program, which already supports Bitcoin and Ethereum as collateral.
How the expanded lending feature works
Under the program, users can lock up their crypto and receive USDC almost instantly. The loans do not have fixed repayment schedules and can be paid back at any time, as long as the position remains healthy.
The new assets 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 and Ethereum-backed loans can reach $1 million.
Stricter risk controls are applied by the platform to the recently added tokens. These assets have a maximum loan-to-value ratio of 49%, and at 62.5%, liquidation is initiated. This reflects how volatile their prices are in comparison to those of Bitcoin and Ethereum.