A leading exchange expands its crypto lending service to the UK market

Gate News message, April 20 — A leading exchange announced that UK users can now access its crypto lending service, allowing users to borrow USDC by using BTC, ETH, or cbETH as collateral. BTC holders can borrow up to $5 million in USDC. The service was launched for US users a year ago and is now provided through its subsidiary registered with the UK Financial Conduct Authority (FCA).

Morpho is a decentralized lending platform built on the Base layer. It provides back-end infrastructure, holds assets as collateral, and issues USDC loans. According to data from the Dune dashboard, the total borrowing activity facilitated through Morpho is approximately $2.3 billion—more than twice the $1 billion milestone celebrated in October 2025. Currently, UK borrowers can use only BTC and ETH as collateral, while US users can use XRP, DOGE, ADA, and LTC.

The expansion comes as the crypto lending market faces challenges. The $292 million KelpDAO exploit on April 18 triggered more than $1 billion in funds withdrawing from Morpho and led to an estimated $10 billion loss in Aave’s total value locked (TVL). Despite recent market volatility, Morpho remains the second-largest crypto lending platform with $6.6 billion in TVL, and active loans of more than $3.7 billion, behind only Aave.