Coinbase leveraged Morpho’s infrastructure to launch Coinbase Loans on Base Chain (Coinbase’s incubated Ethereum L2 network) without building proprietary backend systems from scratch.

This allowed Coinbase to rapidly deploy sophisticated lending products while maintaining complete control over the user experience — from distribution through the Coinbase App to the specific cbBTC/USDC market parameters, with neither Morpho nor other participants able to influence it.

Using Morpho’s unified backend as the foundation, Coinbase tapped into deep liquidity on day one from across the Morpho ecosystem. This allowed Coinbase to offer their customers highly competitive interest rates for borrowing against their BTC without having to originate their own loan book or build any proprietary distribution.

By building onchain with Morpho, everything about the borrowing process is verifiable using Base Scan. This enables users to track their assets in real time and understand exactly where their collateral is stored and that it is not rehypothecated—a key requirement for building trust in the product.

Coinbase then expanded to the lending side with Coinbase Lend, using the same Morpho infrastructure, but this time enabling Coinbase customers to participate on the other side of the market and earn by providing liquidity to borrowers.

The user experience remains simple: customers deposit assets and earn rewards immediately. Behind the scenes, deposits flow from Coinbase accounts into Morpho Vaults curated by Steakhouse Financial, then get allocated to markets like cbBTC/USDC where Coinbase Loans customers borrow these funds, with interest paid going to Coinbase Lend depositors.

To abstract away the blockchain, Coinbase developed a suite of tools remove any complexities and ensure a simple tap-and-play experience in line with the rest of the Coinbase App:

Coinbase offers non-custodial Lend and Borrow products to millions of users