Coinbase Expands Crypto Loans | XRP and Dogecoin Holders Can Borrow Cash
Edited By
Olivia Chen
A major shift in the crypto lending landscape has emerged as Coinbase has announced an expansion of its lending services. As of February 2026, XRP and Dogecoin holders can now secure loans up to $100,000 without the need to sell their assets, sparking discussions across forums.
How It Works
Coinbase's new lending model employs wrapped versions of tokens—specifically cbXRP and cbDOGE. These are backed 1:1 by the actual assets locked in Coinbase's custody. This innovative approach keeps user assets productive in the growing decentralized finance (DeFi) space.
"Borrowers benefit from flexible repayment terms, managed through a loan-to-value ratio," said a user, emphasizing the feature's appeal.
This service operates on Coinbase's Base network, making transactions seamless for both retail and institutional investors. In addition to XRP and Dogecoin, Cardano (ADA) and Litecoin (LTC) now qualify as collateral for loans issued in USD Coin (USDC).
Community Reactions
Sentiments are mixed within the community. While some users hail this as a positive development, highlighting liquidity enhancement, others express concerns regarding the risks associated with locking crypto for loans. As one user noted, "I agree there are risks with DeFi, but hardly as bad as traditional finance when the assets are locked up at such ratios."
Another user raised questions about the process's transparency and its implications on personal bank regulations: "So you lock it up with a variable rate, get USDC, and pay it back to unlock your crypto? What’s stopping others from lending that locked-up crypto?"
Why This Matters
The expansion signifies a notable evolution in on-chain credit markets, introducing new possibilities for crypto holders.
Key Insights
$100,000 loans: Users can borrow substantial amounts without selling assets.
Innovative collateral: Wrapped tokens ensure asset security while enhancing lending capacity.
Active discussions: Community members are debating risks vs. opportunities in decentralized finance.
This new service marks another step by Coinbase to innovate within the crypto lending arena, all while users weigh their options in this rapidly evolving market. Will this not only improve liquidity but also redefine how we perceive crypto loans? Only time will tell.
Forecasts on Coinbase’s Lending Evolution
As more people capitalize on Coinbase’s crypto loan program, there’s a strong chance we’ll see an uptick in participation from both retail and institutional investors. Analysts predict that within the next 12 months, borrowing through wrapped tokens could grow by 30% to 50%. This rise is likely due to the liquidity demands in a market embracing decentralized finance. Additionally, as borrowing conditions become increasingly competitive, expectations are set for enhanced transparency in the processes tied to locked assets, addressing community concerns. Success in this venture may also prompt other exchanges to explore similar lending models, potentially reshaping the entire financial landscape of cryptocurrency.
The Unanticipated Lessons from the Gold Standard Shift
A unique parallel can be drawn between Coinbase's latest lending innovation and the transition from the gold standard to fiat currency systems. Following the end of the gold standard, nations began to issue paper money backed by trust rather than physical assets, allowing for greater flexibility in monetary policy. This led to a significant growth in credit and economic activity, similar to what wrapped tokens promise in the crypto world today. Just as countries navigated the challenges of reconstructing their economic frameworks, crypto holders must now adapt to this new lending landscape, securitizing their assets in innovative ways. The evolution of financial systems often comes with risks and rewards—a complex dance that requires both caution and opportunity-seeking.