Coinbase has officially launched onchain DeFi lending through an integration with the Morpho protocol. This new USDC lending product empowers millions of Coinbase users to earn highly competitive yields, up to 10.8% APY, by lending USDC through Morpho’s DeFi infrastructure, all from the familiar Coinbase app interface.
The offering rolls out in the U.S. (excluding New York), Bermuda, and other select regions, and represents the first time Coinbase customers can participate in a fully on-chain, open lending market without ever leaving the security and simplicity of the centralized platform they trust.
Morpho, a leading DeFi protocol, acts as the backend engine: when users deposit USDC stablecoins, their assets become curated on-chain “vaults” under the management of Steakhouse Financial. These vaults diversify their lending activity and optimize returns, while borrowers, often other Coinbase customers utilizing the exchange’s popular crypto-backed loan service, pay interest that’s returned directly to USDC holders.
There are no deposit lockups, and withdrawals are instant when liquidity is available, giving users flexibility alongside attractive rewards.
Coinbase Streamlines Onchain Finance
By integrating Morpho, Coinbase is embracing the “DeFi mullet” strategy: a familiar, user-friendly fintech experience up front, powered by rigorous, permissionless DeFi protocols behind the scenes.
Coinbase CEO Brian Armstrong highlighted that “the future of finance is on-chain, but accessed through trusted interfaces,” a vision now brought to life for USDC holders everywhere.
The Morpho integration also ties Coinbase’s suite of crypto-backed loan products and public lending markets together for the first time. So far, more than $900 million in loans have originated through Coinbase using Morpho, cementing the protocol’s role as institutional-grade infrastructure for the next era of financial services.
As the $73 billion USDC market seeks low-risk opportunities in an uncertain yield environment, Coinbase’s on-chain lending offers new ways for users to utilize their capital, without the hassle of managing DeFi wallets or navigating unfamiliar interfaces. Security-conscious users can rest assured that Coinbase’s lending operations run through Morpho’s battle-tested smart contracts and third-party audits.
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