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Coinbase Introduces XRP, Dogecoin, Cardano and Litecoin as Collateral for Onchain Loans

Coinbase Introduces XRP, Dogecoin, Cardano and Litecoin as Collateral for Onchain Loans

Coinbase expands U.S. crypto-backed loans via Morpho, capping borrowing at $100,000 in USDC and excluding New York; wrapped collateral adds tax considerations and liquidation risks despite offering liquidity without selling.

BTC
ETH
XRP

Fact Check
Multiple high-authority and highly relevant primary sources, including a direct announcement by Coinbase's CEO on X as well as reputable crypto news outlets, consistently report that Coinbase has expanded its onchain loan service collateral list to include XRP, Dogecoin, Cardano, and Litecoin, in addition to BTC and ETH. The details from these sources are aligned, explicitly naming the tokens in question and specifying their role in the onchain loan product, particularly via Morpho. No credible contradictory evidence appears in the available set, and the consistency across independent high-authority sites, combined with direct corporate communication, strongly supports the veracity of the statement.
Summary

Coinbase expanded its U.S. crypto-backed lending to accept XRP, dogecoin, Cardano’s ADA, and litecoin as collateral. Borrowers can access up to $100,000 in USDC, with loans executed on-chain through the Morpho protocol rather than Coinbase’s balance sheet; the service is available nationwide except in New York. Collateral is wrapped onto Ethereum-compatible networks; while marketed as tax-efficient, wrapping may create taxable events and positions can be liquidated if collateral values fall. Coinbase applies an extra buffer and sends alerts as liquidation thresholds approach. The expansion brings retail-heavy assets—some without native staking rewards—into a product that previously focused on bitcoin and ether; Coinbase reported $17.2 billion in XRP in customer accounts as of Dec. 31, per an SEC filing.

Terms & Concepts
  • USDC: A U.S. dollar–pegged stablecoin issued by Circle, used here as loan proceeds up to a $100,000 cap.
  • Morpho: A decentralized lending protocol that powers Coinbase’s on-chain loan mechanics instead of using the exchange’s balance sheet.
  • Wrapped tokens: Tokenized representations enabling assets like XRP to operate on Ethereum-compatible networks, which may introduce distinct tax and technical considerations.