Coinbase has expanded its crypto backed lending service to include XRP, Dogecoin, Cardano, and Litecoin, but prices of these altcoins remain under pressure despite the new feature.
Key Takeaways
- Coinbase now allows XRP, Dogecoin, Cardano, and Litecoin as collateral for loans up to $100,000 in USDC.
- The service runs through Morpho protocol on the Base network.
- The product has already processed more than $1.9 billion in total loan originations.
- Despite the expansion, altcoin prices remain weak amid macro pressure and extreme market fear.
What Happened?
Coinbase announced that eligible United States users, excluding New York residents, can now borrow against XRP, Dogecoin, ADA, and Litecoin without selling their holdings. The loans are powered by Morpho, a decentralized lending protocol operating on Base, Coinbase’s Ethereum layer two network.
While the update expands utility for altcoin holders, the broader crypto market remains under stress, limiting any immediate price reaction.
Holding XRP, DOGE, ADA, or LTC?
— Coinbase 🛡️ (@coinbase) February 18, 2026
Now you can unlock the value of your portfolio without giving up your position.
Borrow up to $100k in USDC against your tokens, instantly, without selling.
Available now in the U.S. (ex. NY). pic.twitter.com/Uozxim3t7C
Coinbase Expands Crypto Backed Lending
The expansion builds on Coinbase’s existing loan program, which initially supported Bitcoin and later added Ethereum. Bitcoin holders can borrow up to $5 million, while Ethereum holders can access up to $1 million in USDC.
In contrast, XRP, Dogecoin, ADA, and Litecoin loans are capped at $100,000 with stricter risk controls. These tokens allow a maximum 49% loan to value ratio, compared to 75% for Bitcoin and Ethereum. Liquidation for the newly added assets is triggered at 62.5% LTV, while Bitcoin and Ethereum face liquidation at 86%.
Interest rates are variable and determined by supply and demand on the Morpho protocol. Coinbase also charges a one time borrowing fee. There is no fixed repayment schedule, but borrowers must maintain their LTV ratio to avoid liquidation. Coinbase also applies a buffer and sends alerts as accounts approach risk levels.
The product has already processed more than $1.9 billion in loan originations, signaling strong early adoption. According to a recent SEC filing, Coinbase held $17.2 billion worth of XRP in customer accounts as of December 31, highlighting the token’s scale on the platform.
Jacob Frantz, product lead at Coinbase, said: “No matter what you’re holding, you should be able to leverage your crypto without having to sell.”
Altcoins Struggle Despite Utility Boost
Despite what many see as a positive structural development, market prices tell a different story.
- XRP is trading near $1.42 after recent selling pressure, with technical indicators suggesting downside risk toward lower support levels.
- Dogecoin remains below the $0.10 psychological level at $0.09739, down nearly 1% in 24 hours and more than 21% over the past month.
- Cardano trades near $0.2750 and continues to struggle below the $0.30 resistance level.
- Litecoin is hovering around $53 and risks testing the $50 support mark amid a steady weekly decline.
Trading data reflects fading momentum. Dogecoin volume fell to $860 million in 24 hours, while derivatives open interest dropped 5% to $1.8 billion. Glassnode data shows the 90 day average of open interest changes has remained negative since October 2025, signaling declining appetite for risk exposure.
Macro Forces Dominate Market Sentiment
Broader economic conditions appear to be outweighing platform level developments. Federal Reserve meeting minutes signaled no urgency to cut interest rates and left open the possibility of further hikes. A stronger United States dollar has also pressured digital assets.
The Crypto Fear and Greed Index currently stands at 11, deep in extreme fear territory. According to CoinGlass, roughly $214 million in crypto positions were liquidated in the past 24 hours.
Meanwhile, Morpho’s native token has been testing resistance near its 200 day exponential moving average around $1.50. While technical indicators show improving momentum, the token still faces key resistance before confirming a breakout.
CoinLaw’s Takeaway
In my view, this is a meaningful long term move by Coinbase. Allowing users to unlock liquidity without selling is a strong value proposition, especially for investors concerned about triggering capital gains taxes. I have seen similar lending features gain traction during stronger market cycles.
However, right now, macro conditions are clearly in control. When fear dominates and liquidity tightens, even good news struggles to move prices. I believe this expansion strengthens Coinbase’s position in decentralized finance, but price recovery will likely depend more on broader economic signals than on product upgrades alone.
