Key Takeaways
- Coinbase has expanded its lending platform to XRP, Dogecoin, Cardano and Litecoin.
- The move has raised questions about its potential impact on price.
- CEO Brian Armstrong recently praised traders for “buying the dip.”
Coinbase has added wrapped XRP and wrapped Dogecoin (DOGE), along with Cardano (ADA) and Litecoin (LTC), to its on-chain lending product, allowing eligible U.S. users to borrow up to $100,000 in USDC against the tokens.
The expansion has fueled debate over whether broader access to borrowing could support near-term price strength in the assets.
Coinbase Extending Crypto-Backed Loans
The update expands Coinbase’s lending framework beyond Bitcoin (BTC) and Ethereum (ETH), which were previously the program’s primary assets.
Loans are being facilitated through Morpho, a decentralized protocol operating on Coinbase’s Base network.
Eligible U.S. customers, excluding those in New York, can pledge the newly supported tokens as collateral to obtain USDC without selling their holdings.
The structure allows users to access liquidity while remaining exposed to potential upside in the underlying assets.
Bitcoin-backed loans on the platform carry substantially higher limits, while Ethereum borrowing thresholds also exceed those available for the newly added tokens.
Is Coinbase Expansion A Price Catalyst For XRP, DOGE?
While the lending expansion may ease short-term selling pressure by giving holders another way to raise liquidity, it doesn’t automatically mean fresh buying will be coming.
Investors who might otherwise sell tokens during volatile periods could instead post them as collateral and borrow stablecoins.
XRP and Dogecoin remain heavily influenced by Bitcoin’s trajectory and overall risk appetite in crypto markets.
Liquidation Risks
Borrowing against volatile assets carries risk.
If token prices fall sharply, collateral positions can be liquidated, potentially adding to market pressure.
While lending access may reduce forced spot selling initially, it can also accelerate declines if liquidations occur during market downturns.
Armstrong Praises Retail Resilience
The lending expansion comes as Coinbase Chief Executive Brian Armstrong has highlighted what he describes as strong conviction among retail customers during the recent market downturn.
In recent remarks, Armstrong said individual investors on the platform have continued accumulating digital assets despite weaker prices.
He added that most retail accounts now hold as much — or more — crypto than they did late last year.
He characterized the trend as evidence that customers are “buying the dip” rather than retreating.
However, Armstrong’s praise for retail “diamond hands” has drawn scrutiny after regulatory filings showed he sold substantial amounts of Coinbase stock over the past year.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
