Coinbase Adds XRP, DOGE, ADA, and LTC to On-Chain Lending Collateral Assets
February 19, 2026
Coinbase, a prominent cryptocurrency exchange platform, made a significant announcement on February 19 regarding its on-chain crypto-backed lending product. The platform revealed the inclusion of XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC) as collateral assets for this service, which is powered by the decentralized finance (DeFi) protocol Morpho. This move allows eligible users in the United States, excluding those in New York State, to borrow up to $100,000 in USD Coin (USDC) without the need to sell these specific tokens.
Prior to this update, Coinbase’s lending product only supported Bitcoin and Ethereum as collateral assets. Users could borrow up to $5 million and $1 million in USDC, respectively, using these two cryptocurrencies. With the addition of XRP, Dogecoin, Cardano, and Litecoin, the borrowing limits for eligible users have now expanded to include a wider range of digital assets on the platform.
The on-chain lending service offered by Coinbase operates on the Morpho protocol, which is deployed on the Base network. According to reports, this service has facilitated loans exceeding $1.9 billion to date, highlighting the growing demand for crypto-backed lending solutions in the market. Coinbase also mentioned that a one-time borrowing fee is charged, which is then incorporated into the loan principal.
This development comes at a time when the cryptocurrency industry is experiencing increased interest from both retail and institutional investors. The ability to use a variety of digital assets as collateral for borrowing USDC provides users with more flexibility and options when engaging in crypto-backed lending activities. By offering this service to its users, Coinbase aims to cater to the evolving needs of the crypto community and provide innovative solutions for accessing liquidity without having to liquidate their holdings.
The decision to include XRP, Dogecoin, Cardano, and Litecoin as collateral assets for its lending product demonstrates Coinbase’s commitment to expanding its offerings and adapting to the changing dynamics of the crypto market. This strategic move positions the platform as a leader in the crypto lending space and sets a precedent for other exchanges to follow suit in diversifying their product offerings.
Overall, Coinbase’s decision to incorporate additional digital assets as collateral for its on-chain lending product reflects the company’s proactive approach to meet the demands of its users and stay ahead in the rapidly evolving cryptocurrency landscape. It also underscores the growing importance of DeFi protocols in enabling innovative financial services within the crypto ecosystem.
