Coinbase is broadening its crypto lending services, allowing users to borrow against XRP, Cardano, Dogecoin, and Litecoin without selling their holdings.
Key Takeaways
- Coinbase now allows U.S. users (excluding NY) to borrow up to $100,000 in USDC against XRP, ADA, DOGE, and LTC.
- The launch comes during a broader market downturn, with all four assets trading in the red.
- XRP ETFs recorded recent outflows, signaling softer institutional demand.
- Analysts cite liquidity stress in global markets as a key pressure point for crypto.
The move comes at a time when digital asset markets are under renewed pressure, with major altcoins trading lower alongside Bitcoin and Ethereum.
The exchange announced that U.S. customers – excluding New York – can now unlock liquidity from their portfolios by borrowing up to $100,000 in USDC against these tokens. The offering is part of Coinbase’s broader push to position itself as an “everything app” for crypto, blending trading, payments, and lending under one platform.
Lending Expansion Arrives During Market Pullback
The expansion lands in the middle of a clear risk-off phase across crypto markets. As of early February 19, 2026, XRP was trading near $1.42, down more than 4% in 24 hours. Cardano hovered around $0.27 with losses exceeding 3.5%, while Dogecoin slipped roughly 3.4% to about $0.09. Litecoin showed relative resilience but still declined over 1%, trading near $53.
Broader weakness has been linked to macro liquidity concerns and fading momentum in spot ETF flows. XRP-related exchange-traded products recorded roughly $2.2 million in net outflows on February 18, signaling a pause in institutional appetite even as other assets saw selective inflows.
Against this backdrop, Coinbase’s lending feature offers holders an alternative to selling into weakness. By borrowing stablecoins against their crypto collateral, investors can access liquidity while maintaining long-term exposure – a strategy often favored during volatile or uncertain market phases.
Liquidity Pressures Weigh on Sentiment
Market analysts have flagged tightening liquidity conditions in traditional finance as a headwind for digital assets. Rising caution across global markets has spilled over into crypto, reinforcing defensive positioning among traders.
Technical indicators reflect that tone. Some Cardano metrics remain in “strong sell” territory, while Dogecoin faces resistance near the $0.10 zone. Litecoin’s RSI readings suggest neutral-to-bearish demand, with bears watching the $50 level as potential support.
Still, developments within individual ecosystems continue to generate speculation. Cardano founder Charles Hoskinson recently hinted at major announcements expected before the end of February, including potential updates related to the Midnight privacy initiative and the Leios scalability upgrade.
Strategic Shift Toward Utility
For Coinbase, adding XRP, ADA, DOGE, and LTC as eligible collateral represents more than just a feature update. It reflects a strategic shift toward expanding utility for mainstream crypto assets beyond trading.
Crypto-backed loans have become a growing segment of the industry, particularly as investors seek capital efficiency without triggering taxable events or surrendering upside exposure. By enabling instant borrowing in USDC, Coinbase is positioning itself to capture demand from users looking for flexibility during uncertain market cycles.
While prices remain under pressure in the short term, the expansion suggests major platforms continue building infrastructure aimed at long-term adoption – even when sentiment turns cautious.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/xrp-ada-doge-and-ltc-now-eligible-for-coinbase-crypto-backed-loans/