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Coinbase Announces Update Regarding XRP, Cardano (ADA), Dogecoin (DOGE), and Litecoin (LTC)
Coinbase, the largest cryptocurrency exchange in the United States, has announced that it is adding XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC) as collateral options for loans.
The company is expanding its on-chain lending product, offered via the DeFi protocol Morpho, by enabling these four altcoins to be used as collateral.
U.S. customers — excluding residents of New York — will be able to borrow up to $100,000 in USDC without selling their XRP, DOGE, ADA, or LTC holdings.
In an interview with The Block, Coinbase’s Head of Product Jacob Franz stated that users should be able to leverage their crypto as collateral without having to sell it. He added that borrowing against a wider range of tokens creates more opportunities for crypto holders to put their assets to work and reflects a future where tokenized assets enhance financial services.
Coinbase initially launched its on-chain lending product with Bitcoin and later expanded it to Ethereum. Users can currently borrow up to $5 million in USDC against BTC and up to $1 million in USDC against ETH.
The lending program does not have a fixed repayment schedule, but borrowers must maintain a required loan-to-value (LTV) ratio to avoid liquidation.
At present, BTC and ETH loans offer LTV ratios of up to 75%, with a liquidation threshold of 86%. Loans backed by XRP, DOGE, ADA, and LTC offer LTV ratios of up to 49%, with a liquidation threshold of 62.5%.
See also: "OKX Obtains Authorization to Provide Payment Services in Europe"
