Coinbase rolled out a major upgrade to its lending services this week, targeting U.S. customers eager to tap crypto holdings for loans. Starting February 18, eligible users in most states can now pledge four new cryptocurrencies—XRP, Dogecoin, Cardano and Litecoin—to secure borrowing up to $100,000 in USDC stablecoin.

New York residents remain excluded from the offering, in line with ongoing state restrictions on crypto lending. The expansion builds on Coinbase’s existing program, which previously supported fewer collateral options. Customers no longer need to liquidate assets to access liquidity, a feature company executives highlight as key to retaining holdings during market volatility.

CEO Brian Armstrong used the announcement to tackle broader industry challenges. He recently spoke on foundational security issues plaguing cryptocurrencies, urging stronger protocols amid rising hacks and exploits. Coinbase, he noted, prioritizes these fixes alongside product rollouts.

The lending push forms part of a wider strategy. Coinbase aims to deepen its U.S. footprint through targeted enhancements. Officials described the changes as responsive to user demand for flexible borrowing tied directly to digital assets.

Users must meet eligibility criteria, including account verification and sufficient collateral value. Loans carry interest rates that vary by amount and term, according to platform details. Repayment flexibility allows borrowers to settle in USDC or equivalent value.

Armstrong’s comments on security come as the crypto sector grapples with persistent vulnerabilities. High-profile incidents last year drained billions from exchanges and protocols. Coinbase has invested heavily in its infrastructure, including offchain custody solutions and multi-signature wallets.

Analysts view the lending expansion as a competitive play. Rivals like BlockFi and Celsius have offered similar services, though some faced regulatory scrutiny. Coinbase’s regulated status in the U.S. positions it favorably, sources said.

The company plans further innovations. Executives hinted at upcoming features for institutional clients and international markets. For now, the U.S. focus highlights Coinbase’s bet on domestic growth amid a stabilizing crypto winter.

Trading volumes for the added collaterals spiked briefly after the news. XRP saw a 3% uptick in 24 hours, while Dogecoin held steady. Cardano and Litecoin posted modest gains on major exchanges.