Coinbase Lists FCA-Registered tGBP as UK Crypto Lending Launches Amid FCA Crackdown

Coinbase is pushing deeper into the UK crypto market with tGBP, the first FCA-registered pound-backed stablecoin, while also rolling out crypto-backed lending for British users. At the same time, the FCA is still cracking down on unlicensed peer-to-peer crypto trading, proving once again that Britain’s crypto policy is a mix of welcome mat and battering ram.

• tGBP listed on Coinbase: first FCA-registered pound-backed stablecoin
• UK lending launched: borrow USDC against BTC, ETH, and cbETH
• FCA enforcement continues: raids, cease-and-desist letters, and no tolerance for unlicensed trading
• Regulatory fight brewing: Coinbase wants stablecoin rules that don’t kneecap innovation

Coinbase listed tGBP on its global platform on Wednesday, April 22, adding what it describes as the “first British pound-backed stablecoin issued under FCA registration”. The token is issued by BCP Technologies, a firm that is FCA-registered and also took part in the regulator’s regulatory sandbox — a controlled testing environment where financial products are trialed before they’re opened up more broadly.

For anyone new to the concept, a stablecoin is a crypto asset built to hold a steady value against something familiar, usually a fiat currency like the pound or the dollar. tGBP is designed to stay at 1:1 with sterling, and each token is backed by cash and short-term UK government bonds. In plain English: the idea is that users can move pounds on-chain without their money behaving like a caffeine-addled meme coin. That promise depends on reserves being real, liquid, and properly managed — because “trust us, bro” is not a reserve policy.

The listing matters because sterling-backed stablecoins are still a small corner of the market compared with the dollar giants. The broader stablecoin sector is now said to be above $300 billion in total market capitalization, and Coinbase is betting on explosive growth from there. The exchange has projected the market could reach $2 trillion, while also pointing to $30 trillion in stablecoin-settled transactions in 2025 alone. Those are eye-watering figures, but like most crypto forecasts, they come with a healthy side order of “let’s see the numbers before we hand out the victory lap.”

There’s a strategic angle here too. A pound-backed stablecoin gives Coinbase exposure to the UK crypto market in a way that dollar stablecoins cannot. If tGBP gains traction, it could help with local payments, remittances, treasury management, on-chain payroll, and sterling-denominated settlement for tokenized assets. That’s the real prize: not just another ticker, but a usable rail for moving value in the UK without forcing everything through US dollars.

Coinbase is also trying to shape the rulebook before it hardens into something ugly. The company criticized a possible UK requirement for systemic stablecoin issuers to hold 40% of reserves in unremunerated cash at the central bank. That means money sitting idle, earning no interest, which sounds safe in a regulator’s spreadsheet and deeply annoying in the real world. Coinbase also pushed back against any cap on stablecoin issuance, arguing that “implementing a ‘regulatory speed limit’ or cap on stablecoin issuance is effectively a cap on innovation”.

That complaint is not just corporate whining. It gets to a real tension in stablecoin regulation UK: regulators want to avoid opaque reserve structures, redemption problems, and a repeat of the sort of confidence collapse that wipes out users and headlines alike. But if the rules become too rigid, compliant firms can end up buried under red tape while less serious operators find workarounds. A regime that is “safe” only because nobody can use it is not exactly a growth strategy.

Coinbase says stablecoins should also be allowed to function as settlement assets in wholesale tokenization markets outside the sandbox. Translation: don’t trap the useful stuff in test mode forever. Tokenization — the process of putting real-world or financial assets onto blockchain rails as digital tokens — is one of the more serious use cases in crypto. If stablecoins become the cash leg for tokenized securities, funds, and other assets, they stop being a side quest and start looking like financial infrastructure.

That’s especially relevant for Bitcoin believers who understand the difference between monetary soundness and transactional utility. BTC is the clean money; stablecoins are often the plumbing that lets people actually move, settle, and borrow without selling their long-term holdings. They serve different roles, and pretending otherwise is how you end up in a cult with bad UX.

Coinbase is also widening its product stack for British users beyond stablecoins. Two days before the tGBP listing, it launched crypto-backed lending in the UK. The service lets users borrow USDC against collateral including Bitcoin, Ethereum, and cbETH. It is powered by Morpho, an open-source lending protocol operating on Base, Coinbase’s layer-2 network. In practical terms, users can post crypto they already own and receive dollar stablecoins without selling the underlying assets.

That can be useful for long-term holders who want liquidity without dumping their coins. But it’s not free money and it’s not magic. If the value of the collateral drops too far, borrowers can be liquidated. That’s the tradeoff with any crypto-backed loan: you keep your stack, but the market still gets a say in whether you get to keep it. Borrowing against volatile assets can be smart — right up until it isn’t.

Coinbase says UK users can borrow up to $5 million in USDC, depending on collateral. Keith Grose, Coinbase’s UK country director, said the goal is to make Coinbase “the best place to invest in crypto and manage money in the UK.” That’s an ambitious pitch, but there’s at least some substance behind it now. The same lending product first launched in the United States in January 2025, and Coinbase says it has generated more than $2.17 billion in total loan originations through Morpho by mid-April 2026.

The move also helps Coinbase compete not just as an exchange, but as a more complete crypto finance platform. A venue that offers stablecoins, borrowing, and settlement rails is closer to an on-chain financial super-app than a simple buy-and-sell shop. That matters because the next phase of adoption is not only about price speculation. It’s about whether people can save, borrow, move, and settle value without needing a pile of legacy intermediaries in the middle.

Of course, Coinbase is building all this while the FCA is still playing hardball with anything unlicensed. The regulator recently carried out what it called its “first joint operation targeting illegal peer-to-peer crypto trading” in London. The FCA raided eight London premises and issued cease-and-desist letters. It also said bluntly:

“There are currently no FCA-registered peer-to-peer crypto traders or platforms operating in the UK”

That’s the UK in a nutshell right now: formal crypto rulemaking is slow, but enforcement can move fast. The FCA’s broader crypto regulatory framework is not expected to fully take effect until October 2027, with firm authorization applications expected to open from September 2026. Until then, the watchdog seems determined to make an example out of any sketchy or unregistered operators trying to freestyle their way through the market.

To be fair, there’s a reason regulators are wary. Crypto history is stuffed with “decentralized” products that turned out to be centrally mismanaged disasters wearing a hoodie. Reserve rules, licensing, and compliance checks exist for a reason. But there’s a difference between guarding against fraud and building a policy moat so deep that only a handful of giants can afford to play. If Britain wants a serious domestic crypto economy, it needs rules that filter out the trash without choking off the builders.

The current setup suggests two UK crypto paths are emerging at once. One path is regulated and increasingly institution-friendly: pound-backed stablecoins, tokenization, lending, and financial infrastructure that looks more like the future and less like a casino with better branding. The other path is the one the FCA is trying to crush: shady peer-to-peer activity, unregistered intermediaries, and the usual parade of opportunists who treat compliance like an optional side quest. Good riddance to the latter.

Key questions and takeaways

What is tGBP?

tGBP is a British pound-backed stablecoin issued by BCP Technologies and listed by Coinbase. Each token is redeemable 1:1 for sterling.

Why does tGBP matter?

It gives the UK a regulated pound stablecoin on a major exchange and could support payments, remittances, treasury use, and tokenized settlement in sterling.

How is tGBP backed?

It is backed by cash and short-term UK government bonds, which are meant to support stability and redemption at face value.

What is Coinbase arguing about stablecoin rules?

Coinbase wants the UK to avoid heavy reserve mandates and issuance caps, warning that these rules could stifle innovation and make compliant products harder to scale.

What does Coinbase’s UK lending product do?

It lets UK users borrow USDC against Bitcoin, Ethereum, and cbETH collateral using Morpho on Base.

Is crypto-backed lending risky?

Yes. If the value of the collateral falls too much, borrowers can be liquidated. It can be useful, but it is not risk-free.

How strong is the FCA’s crackdown?

Very strong. The FCA raided London premises, issued cease-and-desist letters, and said there are no FCA-registered peer-to-peer crypto traders or platforms operating in the UK.

When will the UK’s full crypto framework arrive?

The FCA’s broader crypto regime is expected to take effect in October 2027, with authorization applications opening in September 2026.

What does this mean for UK crypto?

The UK could become a serious hub for regulated stablecoins and crypto finance if policymakers avoid overcorrecting. If they go too far with reserve rules and caps, they risk smothering the very market they want to supervise.

Coinbase is clearly betting that the UK can be more than a regulatory waiting room. With tGBP, USDC lending, and tokenization infrastructure all moving in the same direction, the exchange is building for a future where crypto is not just traded, but used. The FCA, meanwhile, is making it equally clear that if you want to operate in Britain, you’d better do it cleanly or be ready for a very unpleasant knock on the door.