Binance brings noncustodial stablecoin yield to millions of users by plugging into Morpho’s universal lending network

As exchanges expand Earn offerings beyond custodial yield products, noncustodial options have become increasingly important. Users want access to onchain lending rates, but many do not want to manage DeFi workflows directly, including wallet setup, gas fees… let alone navigating the seemingly daunting DeFi protocol landscape.

For an exchange, the bigger challenge is sustaining attractive rates and meaningful capacity over time without having to build its own lending books. If an Earn product depends on a narrow set of borrowers or isolated liquidity, utilization, and yields can fluctuate sharply, and growth can become constrained.

Binance chose Morpho to solve this problem: by connecting to Morpho’s universal lending network, Binance users can access sustainable borrowing demands from users of Coinbase, Gemini, Crypto.com, Ledger, Trust Wallet, and more.

Binance integrated Morpho through Binance Wallet’s Earn flow. Users deposit USDT or USDC and supply into Morpho from within Binance Wallet, a noncustodial user experience that is integrated into the Binance App.

The flow is explicitly noncustodial. After supplying, Binance Wallet shows position tokens such as steakUSDT or steakUSDC inside the wallet, representing the user’s onchain position. The redemption flow returns USDT or USDC directly back to the wallet, instantly.

Binance users can choose to deposit into two Morpho Vaults curated by Steakhouse Financial and Gauntlet.

This architecture brings two benefits for Binance and its users:

1. Connection to a universal lending network Morpho Vaults allocate deposits to underlying lending markets, where borrowing demand is not tied to a single distribution channel. As additional applications integrate Morpho, the set of borrowers and sources of utilization grows, which can help sustain capacity and rate competitiveness over time.
2. DeFi access through a trusted exchange interface Binance keeps distribution, compliance standards, and product UX in its own environment, while Morpho provides the onchain backend rails. For Binance users, they can access Morpho noncustodially through an interface that they already use and love.

Binance’s Morpho Earn integration provides proof for the universal lending network thesis:

1. Meaningful scale in USDT deposits. The Steakhouse USDT vault shows 87.64M USDT TVL, and the Gauntlet USDT Prime vault shows 7.04M USDT TVL, totaling 94.68M USDT at the time of writing.
2. A simplified onchain experience for users. Users access Morpho noncustodially from their Binance Wallet without having to leave the familiar interface, all in the KYCed environment of Binance.
3. A stronger long-run distribution story. As Morpho is an open network connecting lenders and borrowers globally, each additional integration expands sustainable borrowing demand for the same pool of lender liquidity, reinforcing the underlying economics for Earn products connected to the network.

1. An exchange can ship noncustodial lending access without pushing users into a standalone DeFi experience.
2. An exchange can connect its users to a broader set of borrowers by integrating into a shared lending network, rather than building demand in a silo.
3. Asset curators (for example, Steakhouse Financial and Gauntlet) reduce the need for exchanges to run a lending book internally, instead tap into existing borrowing demand in vaults curated by DeFi’s longest-standing asset managers onchain.