Coinbase has launched a new USDC lending feature powered by Morpho, enabling millions of customers to earn highly competitive yields directly from their trusted platform.

The launch builds on the successful rollout of crypto-backed loans on Coinbase ($900M+ in loans originated), also powered by Morpho, where customers can take USDC loans against their BTC. Together, these products create Coinbase’s first complete onchain lending and borrowing ecosystem, furthering their goal of becoming the everything exchange.

This represents a continuation of the largest consumer-facing integration of DeFi infrastructure to date and demonstrates how fintechs and DeFi can work together to deliver sophisticated financial products at scale.

When Coinbase customers deposit USDC, the funds are routed through Morpho Vaults curated by Steakhouse Financial, who actively manage risk and allocate capital across different lending markets to optimize returns. Depositors earn yield from others, such as customers taking USDC loans on Coinbase, who borrow the USDC in exchange for paying interest.

 

Customers benefit from competitive APYs driven by interest paid by a global set of borrowers. With no lockups, instant withdrawals, and automatic interest accrual, users can watch their balance grow continuously while maintaining the security and convenience of the Coinbase platform they trust.

This integration illustrates what we call the “DeFi Mullet” — fintech user experience in the front and institutional-grade DeFi infrastructure in the back. It’s a blueprint that major enterprises are adopting as they recognize the benefits of building on open DeFi infrastructure like Morpho.

With both lending and crypto-backed loans live, Coinbase has built a fully onchain product suite for savings and borrowing. The two offerings complement each other perfectly: lenders provide liquidity that directly fuels crypto-backed loans, allowing both products to scale together while delivering better terms than standalone alternatives. This eliminates the need for users to move assets elsewhere, cementing Coinbase as the primary financial hub for their customers.

This integration supports Morpho’s thesis that the future of finance will be built on onchain infrastructure, accessed through trusted fintech interfaces. As more institutions recognize the benefits of DeFi, Morpho is positioned to be the open network powering this transformation and connecting lenders and borrowers to the best opportunities worldwide.