New York, February 20, 2026, 17:16 EST — After-hours.
XRP rose about 1.4% on Friday to around $1.43, after Coinbase expanded its crypto-backed lending product to accept the token as collateral. (Binance)
Coinbase said eligible U.S. users outside New York can borrow up to $100,000 in the USDC stablecoin by pledging XRP, dogecoin, cardano’s ada or litecoin through Morpho, a decentralised lending protocol that runs on Coinbase’s Base network. The exchange set a maximum loan-to-value ratio of 49% for the new collateral and said liquidation would start at 62.5%. (Crypto)
The move matters now because credit is creeping back into corners of crypto that had been forced into cash trading during last year’s selloff. Even a limited lending window can change behaviour: it gives holders another way to raise dollars without hitting the sell button.
Rates are still the bigger lever. Data released on Friday showed the personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge — rose 0.4% in December from the prior month and 2.9% from a year earlier, while the “core” measure excluding food and energy also rose 0.4% on the month and 3.0% year on year. (Bureau of Economic Analysis)
That report had been delayed by the October–November 2025 U.S. government shutdown, adding some noise to the timeline traders usually watch. Crypto investors tend to treat sticky inflation as a bad headline because it can keep interest rates higher for longer.
Coinbase’s pitch was simple. “Borrowing up to $100K in USDC against your tokens, instantly, without selling,” the announcement said. (CryptoPotato)
USDC is designed to track the U.S. dollar, and crypto-backed loans are over-collateralised — borrowers post more value than they take out. The trade-off is speed: if the collateral drops fast, automated liquidations can kick in.
Minutes from the Fed’s January meeting, released this week, underscored how divided policymakers remain on the next step. Officials held the benchmark rate at 3.5% to 3.75%, with two voting for a quarter-point cut, while the minutes noted market-based expectations implied one to two cuts this year; the next meeting is scheduled for March 17–18. (Federal Reserve)
But the lending headline cuts both ways for tokens like XRP. It can support prices by reducing the need to sell for cash, yet it can also add leverage that accelerates moves in either direction when volatility spikes.
Traders are also circling a nearer regulatory date: the Securities and Exchange Commission has set Feb. 26 as its deadline to approve, reject or extend review of NYSE Arca’s proposal to list and trade shares of the T. Rowe Price Active Crypto ETF. The filing said the fund expects to hold between five and 15 crypto assets and listed XRP among those it currently considers eligible. (Sec)
