Coinbase Launches $USDC On-Chain Lending Feature With 10.8% Yields


Coinbase has integrated Morpho protocol lending directly into its platform, offering $USDC holders yields up to 10.8% through decentralized finance markets. The feature marks significant mainstream DeFi integration for the exchange.


Steakhouse Financial curates on-chain vaults on Base network, Coinbase's Ethereum layer-2 solution. Users can deposit $USDC and earn yield immediately while maintaining withdrawal flexibility, subject to liquidity conditions. #DeFi #yield


The new lending option significantly exceeds Coinbase's existing USDC Rewards program paying 4.1% APY (4.5% for Coinbase One members). Traditional rewards come from marketing budgets, while on-chain lending generates returns through DeFi protocols. #USDC #lending


Smart contract wallets automatically route funds across lending pools to optimize returns for users. Coinbase designed the experience to feel familiar despite utilizing decentralized protocols, bridging traditional finance expectations with DeFi functionality.


Morpho ranks among the largest decentralized lending protocols with over $8.3 billion in total value locked. The protocol's dollar-denominated TVL increased substantially throughout 2024, reflecting growing institutional DeFi demand. #TVL


The rollout begins with select users across the United States (excluding New York), Bermuda, and international markets, including Hong Kong, the UAE, New Zealand, the Philippines, Taiwan, and South Korea. Wider availability is set to follow over the coming weeks.


Coinbase previously collaborated with Morpho for Bitcoin-backed loans, currently allowing customers to borrow up to $1 million in $USDC against Bitcoin holdings. The exchange expanded DeFi integration as part of connecting users to the on-chain economy.

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September 19, 2025 at 3:57 AM
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