Coinbase Launches UK Crypto Lending Using DeFi Protocol Morpho

Coinbase launches crypto-backed lending services for UK customers on Wednesday, allowing them to borrow USDC against Bitcoin, Ethereum, and cbETH using DeFi protocol Morpho as backend infrastructure. The product, which debuted in the U.S. in January 2025 and has generated over $2.17 billion in loan originations, operates on the Base network with algorithmically-set rates and no fixed repayment schedule. Coinbase avoids balance sheet risk in this model while expanding beyond its core exchange business. The launch coincides with Bitcoin reaching an 11-week high of $93,259 and Coinbase stock rising 1.8% in premarket trading, with analysts like Piper Sandler raising price targets to $180 while maintaining neutral ratings.

Bitcoin rally drives crypto-linked stock gains

• ▪Bitcoin climbed to $93,259 in the past 24 hours, an 11-week high.
• ▪Nexo analyst Iliya Kalchev attributed crypto-linked stock gains to Bitcoin.
• ▪Coinbase stock rose 1.8% in premarket trading on Wednesday.
• ▪Robinhood stock gained 1.6% in premarket trading on Wednesday.
• ▪President Trump extended the U.S.-Iran cease-fire.

Analyst price targets and earnings outlook for Coinbase

• ▪Piper Sandler maintained a Neutral rating on Coinbase stock.
• ▪Piper Sandler expects Coinbase management to sound upbeat on trading volumes heading into Q1 earnings.
• ▪Citizens cut its price target on Coinbase stock to $355 from $400 earlier in April.
• ▪Piper Sandler raised its price target on Coinbase stock to $180 from $150 on April 15.

UK launch of crypto-backed lending via Morpho protocol

• ▪Coinbase's UK crypto-backed lending uses DeFi protocol Morpho as its backend infrastructure.
• ▪Coinbase's crypto-backed lending product launched in the U.S. in January 2025.
• ▪U.S. loan originations through the Coinbase-Morpho integration crossed $2.17 billion.
• ▪Coinbase launched crypto-backed lending for UK customers on Wednesday.
• ▪UK customers can borrow USDC against Bitcoin, Ethereum, and cbETH through Coinbase.
• ▪The Coinbase-Morpho lending product has no fixed repayment schedule.

Perspective of Morpho

• ▪Morpho's Base network deployment supports over $2.17 billion in loan originations through the Coinbase partnership.

Perspective of Financial analysts

• ▪Piper Sandler's price target increase to $180 reflects expectations of improved trading volumes heading into Q1 earnings.

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