While the market pulls back, Coinbase expands its on-chain lending via Morpho, adding $XRP , $DOGE , ADA, and LTC as collateral for USDC loans.
Eligible U.S. users, excluding New York, can now borrow up to $100,000 in $USDC without selling their holdings.
Borrowing instead of selling preserves upside exposure and may reduce taxable events, but volatility increases liquidation risk. LTC alone is down roughly 54.9% over the past year, showing how quickly collateral value can shrink.
In a red market, Coinbase is expanding utility and liquidity options.
Will crypto-backed lending become the new standard for holders who refuse to sell, or does this increase systemic risk if volatility spikes again?