Coinbase, the largest US cryptocurrency exchange, has launched an integration with decentralized lending protocol Morpho. This will allow users to lend out their holdings in the stablecoin USD Coin (USDC) and earn, in the exchange's words, “competitive returns.”
According to the announcement, the yield will increase to a maximum of 10.8% per year from September 18, 2025. This is provided as an incentive for Coinbase app users to lend out their USDC.
The exchange will keep its direct revenue unchanged. 4.1% per year for USDC deposits and up to 4.5% for Coinbase One members. The difference is that working with Morpho expands your options for participating in loans. On-chain It offers great returns from the same Coinbase application.
The operation is done as follows. After depositing, a smart contract wallet will be created that connects to Morpho through a vault managed by Steakhouse Financial Company. Funds are distributed to loan markets to optimize interest rates According to Coinbase, capital can be withdrawn at any time subject to available liquidity.
According to DeFiLlama, Morpho has concentrated over $8.3 billion in total locked assets and was named one of the best crypto lending platforms in 2025 by CriptoNoticias.
Coinbase confirmed that the new option will be available to users in the United States (excluding New York), Bermuda, and other countries (it did not specify which countries) in the coming weeks.
