Coinbase Allows XRP, Dogecoin, and Other Altcoins as Collateral Assets

▲ Coinbase, XRP, Cardano, Litecoin, and Dogecoin / Image generated by ChatGPT

U.S.-based cryptocurrency exchange Coinbase has begun accepting major altcoins as collateral assets, marking a pivotal moment as digital assets emerge as core credit collateral in the global financial market.

According to cryptocurrency media outlet CoinGape on February 18 (local time), Coinbase has added major altcoins, including XRP, as collateral for its lending service, Coinbase Borrow. The newly approved collateral assets are XRP, Cardano (ADA), Litecoin (LTC), and Dogecoin (DOGE). This move is seen as expanding opportunities for both institutional investors and retail customers to secure liquidity without liquidating their digital asset holdings.

The expansion of Coinbase’s collateral options is a strategic step to strengthen its institutional services. By allowing users to borrow U.S. dollars against XRP and other popular assets, the exchange is addressing growing demand for diverse credit products within the crypto ecosystem. The decision reflects rising confidence in the long-term value and liquidity of these altcoins, which have recently seen broader adoption and increased regulatory clarity in the U.S. market. Users can now borrow up to $100,000 without selling their holdings.

XRP is particularly noteworthy for having recently reached a regulatory milestone. After being officially recognized as a non-security in certain contexts, its inclusion as collateral on major U.S. exchanges further solidifies its status as a legitimate financial asset. Coinbase’s decision to support XRP in this capacity signals that the industry is moving beyond past legal uncertainties and focusing on the utility of the XRP Ledger infrastructure. The service is currently available across the United States, excluding New York State.

Dogecoin and Litecoin are also expanding their presence in the professional lending market. Once dismissed as merely a meme coin, Dogecoin has demonstrated significant market resilience and a dedicated community, earning recognition from major financial platforms. Litecoin, often referred to as an alternative to Bitcoin (BTC), has been acknowledged for its value as a stable payment method, leading to its inclusion on the new collateral list. The expansion of institutional services further strengthens market confidence in these assets.

As the global digital asset credit market continues to mature, the range of accepted collateral is expected to expand further. Coinbase’s latest update signals a move toward a more integrated financial system where digital and traditional assets coexist seamlessly. Improved liquidity provision is likely to enhance overall market stability, enabling investors to implement more diverse asset management strategies using their holdings.

Disclaimer: This article is for investment reference purposes only, and no responsibility is assumed for any investment losses resulting from reliance on its content. The information provided should be interpreted solely for informational purposes.