New York, February 20, 2026, 17:16 EST — Trading after the bell.
XRP edged up roughly 1.4% Friday, trading near $1.43, after Coinbase included the token as collateral in its crypto-backed lending product.
Coinbase is letting eligible U.S. users, except those in New York, borrow up to $100,000 worth of USDC stablecoin by putting up XRP, dogecoin, cardano’s ada, or litecoin as collateral through Morpho—a decentralized lending protocol operating on Coinbase’s Base network. The exchange capped the loan-to-value ratio for these assets at 49%, with liquidations triggered at 62.5%.
This shift is catching attention as credit makes its way into crypto sectors that relied on cash-only trading during last year’s rout. Even a small lending window changes the game. Holders suddenly have an extra route to access dollars without needing to sell.
Interest rates remain the main driver. Fresh figures Friday put the personal consumption expenditures (PCE) price index, the Federal Reserve’s favored inflation metric, up 0.4% for December compared to November, and 2.9% higher than a year ago. The “core” reading, which strips out food and energy, matched that 0.4% monthly gain and posted a 3.0% increase versus last year. Bureau of Economic Analysis
The October–November 2025 U.S. government shutdown pushed back that report, disrupting the timeline traders typically track. For crypto investors, persistent inflation is rarely good news—it signals rates could stay elevated longer than they’d like.
Coinbase kept it straightforward: “Borrowing up to $100K in USDC against your tokens, instantly, without selling,” read the announcement. CryptoPotato
USDC aims to follow the U.S. dollar. For crypto-backed loans, borrowers have to post more value than they borrow—over-collateralization is the standard here. The risk: if collateral values sink quickly, automated liquidations can hit in a flash.
This week’s release of the Fed’s January meeting minutes reveals policymakers are still split on where rates go from here. The benchmark stayed put at 3.5% to 3.75%. Two members backed a quarter-point cut. Market pricing, the minutes show, points to one or two cuts this year. The Fed gathers again March 17–18.
The lending story is a double-edged sword for tokens like XRP. On one hand, it props up prices since holders aren’t forced to sell for cash. Still, it introduces leverage—so when volatility hits, price swings can get amplified in both directions.
There’s another deadline coming up fast: the Securities and Exchange Commission will need to make a call on Feb. 26—approve, deny, or delay—when it comes to NYSE Arca’s bid to list and trade the T. Rowe Price Active Crypto ETF. According to the filing, the fund plans to hold anywhere from five to 15 crypto assets, with XRP showing up on the current list of eligible tokens.
