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<p>Coinbase is broadening its on-chain lending service beyond Bitcoin and Ethereum to include major retail altcoins.</p>
<p>Eligible U.S. users, excluding residents of New York, can now borrow against XRP, Cardano (ADA), Litecoin (LTC), and Dogecoin (DOGE) without selling their holdings.</p>
<p>The move allows users to unlock liquidity while avoiding immediate taxable events that would typically result from selling crypto assets.</p>
<h3 id="how-the-lending-infrastructure-works">How the Lending Infrastructure Works</h3>
<p><a href="https://www.coindesk.com/markets/2026/02/19/coinbase-lets-xrp-ada-and-dogecoin-holders-borrow-up-to-usd100-000-without-selling" rel="noopener noreferrer nofollow">The lending product is powered</a> by the decentralized Morpho protocol and operates on Base, Coinbase’s Ethereum Layer 2 network. While Coinbase provides the front-end interface, the loans themselves are sourced and managed permissionlessly on-chain through smart contracts.</p>
<p>For the newly added altcoins, users can borrow up to $100,000 in USDC. Higher borrowing limits remain in place for larger-cap assets, with up to $5 million available against Bitcoin and up to $1 million against Ethereum.</p>
<p>In certain cases, Coinbase uses wrapped representations of assets as collateral. For example, cbBTC is used as the collateral asset within Morpho smart contracts rather than native Bitcoin itself.</p>
<p>Risk parameters for the newly added altcoins reflect their higher volatility profile. The maximum Loan-to-Value (LTV) ratio is set at 49%, with a liquidation threshold of 62.5%. This means borrowers face liquidation if collateral value declines significantly relative to the borrowed USDC.</p>
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<h3 id="market-context-and-financial-scale">Market Context and Financial Scale</h3>
<p>Since launching in January 2025, Coinbase’s on-chain lending service has issued more than $1.9 billion in cumulative loans. The expansion to XRP, ADA, LTC, and DOGE follows a period of heightened market volatility and a wave of liquidations earlier in February 2026.</p>
<p>By adding these assets as eligible collateral, Coinbase is widening access to liquidity for retail-heavy tokens that often experience sharp price swings during broader market corrections.</p>
<p>Structurally, the update reinforces Coinbase’s strategy of blending centralized user experience with decentralized credit infrastructure. Rather than operating as a traditional balance-sheet lender, the platform routes demand into on-chain liquidity pools, reducing direct counterparty risk while maintaining regulatory boundaries.</p>
<p>The addition of these four assets signals that on-chain borrowing is moving beyond Bitcoin and Ethereum into the broader altcoin market, positioning DeFi-powered lending as a more integrated feature of mainstream exchange platforms.</p>
<p>The post <a href="https://www.ethnews.com/coinbase-expands-on-chain-lending-to-xrp-ada-ltc-and-doge/" rel="noopener noreferrer nofollow">Coinbase Expands On-Chain Lending to XRP, ADA, LTC, and DOGE</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Coinbase Expands On-Chain Lending to XRP, ADA, LTC, and DOGE

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